One William Street Capital Management, L.P.has raised its target for retro reinsurance protection from its debut catastrophe bond, with now up to $135 million in US named storm protection sought, Artemis has learned.At the same time, we’re told that the price guidance for all three tranches of cat bond notes that Meadows Ltd.is offering have fallen, with revised spread ranges all now pitched at below their original levels.

We were when it was initially marketed to investors.The transaction is set to benefit a cedent named OIS Series 2 LLC, which is a wholly owned subsidiary of New York headquartered alternative asset manager and registered investment adviser One William Street Capital Management, L.P.One William Street Capital Management has around US $8 billion in assets under management and invests in the insurance-linked securities (ILS) asset class, through a range of structures from reinsurance, through sidecars, and cat bonds.

OIS Series 2 LLC is a fund structure that holds ILS investments for One William Street Capital, we understand, so this cat bond is being issued to source retrocessional reinsurance, or risk transfer capital, to hedge its own insurance-linked securities holdings.When it first came to light, the offering size for this Meadows Series 2025-1 cat bond issuance was $125 million.But we’re now told that has risen to as much as $135 million, while at the same time the price guidance has been lowered.

This cat bond targets reinsurance on an industry-loss trigger basis and with both occurrence and annual aggregate protection sought for losses from the covered peril of US named storms, running until the end of November 2029.The Class A notes were originally targeted at $50 million in size, but this has been increased to up to $55 million, we are told.These notes will provide industry-loss trigger per-occurrence protection against losses from named storms in Florida, Puerto Rico and the US Virgin Islands.

The Class A notes have an initial base expected loss of 6.96% and were first offered to cat bond investors with price guidance in a range from 13.5% to 14.5%, but that has now fallen to a revised lower range of 12.75% to 13.5%, our sources said.The Class B notes continue to target $50 million of industry-loss trigger per-occurrence protection against losses from named storms across the United States 50 states and D.C.but excluding Florida.

The Class B notes have an initial base expected loss of 7.77% and were first offered to cat bond investors with price guidance in a range from 12.5% to 13.5%, but this has also been revised down to a range of 12% to 12.5%.The Class C notes initially targeted $25 million, but are now looking for up to $30 million of industry-loss trigger annual aggregate protection against losses from named storms across the US states of Florida, Georgia, North and South Carolina, Puerto Rico and the US Virgin Islands, we understand.The Class C notes have an initial base expected loss of 2.14% and were first offered to cat bond investors with price guidance in a range from 8.75% to 9.75%, which has again been lowered to a revised range of 8% to 8.75%.

As a result, One William Street Capital looks set to make the most of the strong execution being seen in the catastrophe bond market, thanks to abundant capital and investor demand, to potentially secure more reinsurance than was originally sought, at lower pricing than was first targeted.You can read all about this new catastrophe bond from One William Street Capital and every other cat bond transaction issued in our Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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