USAA’s 13th catastrophe bond in the Residential Re series, Residential Reinsurance 2009 Ltd. has been in demand. The deal started life as $150m, but due to what is assumed to be a combination of investor demand and USAA sensing the opportunity to transfer more risk to the capital markets, it’s been increased to $250m. Originally three equal tranches of $50m, the first tranche is now $70m the second $60m and the third has increased to $120m. The tranches have been priced as; the first 13% over 3-month libor, the second 17% over 3-month libor and the third 12.5% over 3-month libor rates.
No other details have changed and the deal is expected to be settled on the 28th May. Full details are available in the Artemis Deal Directory.