According to sources, Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond transaction, the Everglades Re II Ltd. (Series 2017-1) deal, is set to upsize to $300 million in size before it completes.
The transaction launched as a $250 million cat bond offering, on which the pricing has tumbled as our source told us that the coupon is set to drop down to the bottom of initial guidance at 5%.
Earlier today we wrote that the pricing had tightened and fallen, but at the time it was uncertain whether the size of the deal would increase. The price guidance on these notes began at a range of 5% to 5.75%, then tightened to 5% to 5.25%, before now settling at the bottom of the range.
Then, this afternoon we covered the approval of Florida Citizens 2017 reinsurance program, which is slated to be around $1.3 billion in size. But still, the split between traditional reinsurance and catastrophe bonds were unknown.
Now, we’re told that the transaction is set for pricing as a $300 million offering of Everglades Re II Series 2017-1 Class A notes, which will offer their investors a 5% spread.
Yet again this is a sign of the appetite of catastrophe bond investors, as this latest Florida Citizens cat bond is perhaps the most efficiently priced it has sponsored to date, thanks to the very keen pricing.
You can read about this new Everglades Re II Ltd. (Series 2017-1) cat bond transaction and every other catastrophe bond in the Artemis Deal Directory.
Join Artemis in Singapore on July 13th 2017 for ILS Asia, tickets on sale here
View all of our Artemis Live video interviews and subscribe to our podcast.
All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.
Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
