The $200m Gator Re Ltd. notes from first time catastrophe bond sponsor American Strategic Insurance Group have now priced at the bottom end of the already reduced range, Artemis understands.
Artemis reported yesterday that thanks to strong investor demand the Gator Re cat bond was oversubscribed and this strong investor demand helped it to grow from the initial$125m to $200m in size, a 60% upsizing.
At the same time the price guidance had been lowered. The Gator Re cat bond had launched with guidance of 7% to 7.75% but that range dropped and narrowed to guidance of 6.5% to 7%.
At final pricing today sources tell Artemis that the pricing settled at the bottom of that reduced range at 6.5%. That is a 12% reduction in pricing from the mid-point of the originally marketed range.
American Strategic Insurance Group will be delighted with the success of its first catastrophe bond, with Gator Re Ltd. having grown by 60% during marketing to provide the sponsor with more reinsurance protection and at an attractive price, reduced by approximately 12% during marketing.
The Gator Re cat bond is expected to close in the next week.