The price guidance has been reduced a second time for the debut catastrophe bond for One William Street Capital Management, L.P., while the deal is still targeted to secure a slightly upsized $135 million in US named storm retrocessional reinsurance protection for the investment manager, Artemis has learned.This cat bond 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 manages around US $8 billion in assets and invests in the insurance-linked securities (ILS) sector, through a range of structures from private reinsurance, through sidecars, and catastrophe bonds.OIS Series 2 LLC is a fund structure that holds ILS investments for One William Street Capital, we understand, so it appears this debut cat bond is being issued to source retrocessional reinsurance, or risk transfer capital, to provide a hedge for the manager’s insurance-linked securities portfolio.

, the offering size for this Meadows Series 2025-1 cat bond issuance was $125 million.Then in an update .Sources now tell us that the offering size remains at the slightly upsized $135 million, but the price guidance for all three tranches has been lowered again.

This cat bond issuance targets reinsurance on an industry-loss trigger basis for the sponsor, with both occurrence and annual aggregate protection sought to cover losses from the covered peril of US named storms, running until the end of November 2029.The Class A notes are still at their slightly upsized $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 come with an initial base expected loss of 6.96%.They were first offered to cat bond investors with price guidance in a range from 13.5% to 14.5%, which was then revised lower to between 12.75% to 13.5%, and now has been revised a second time to a range of 12.25% to 12.75%, we are told.The Class B notes remain at their initial $50 million size to provide 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 will have an initial base expected loss of 7.77%.They were first offered to cat bond investors with price guidance in a range from 12.5% to 13.5%, which was first revised down to a range of 12% to 12.5% and has now been revised down again to between 11.5% and 12%.

The Class C notes also remain at a slightly upsized $30 million, to provide 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.The Class C notes come with an initial base expected loss of 2.14%.They were first offered to cat bond investors with price guidance in a range from 8.75% to 9.75%, which was lowered to a revised range of 8% to 8.75% and has now been lowered a second time to between 7.5% and 8%, we understand.

It’s yet another indication of the attractive pricing available in the catastrophe bond market for sponsors that got out early in the final quarter of the year.Like other recent issuances, it appears sponsor One William Street Capital Management could benefit from strong execution to secure its debut catastrophe bond priced well below the initial price guidance that the notes were offered at.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.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.