Heritage Insurance Holdings, Inc.is looking to expand its new catastrophe bond, with the target for the   deal now lifted to as much as $235 million.Heritage returned to the catastrophe bond market back in the first week of April, as we reported at the time, seeking $180 million of named storm reinsurance from the capital markets with this new Citrus Re 2023-1 transaction.This new Citrus Re 2023-1 catastrophe bond will be the .

The Citrus Re 2023-1 cat bond notes will provide Heritage and its subsidiaries with US named storm reinsurance protection, on an indemnity trigger and per-occurrence basis, across a three-year term to June 2026.We’re now told that Heritage has upsized its target for this new cat bond to provide between $215 million and as much as $235 million of named storm reinsurance protection for the carrier.A Class A tranche of notes were $80 million in size, but are now targeted at between $100 million and $120 million.

With a base expected loss of 1.66%, the Class A notes were at first offered to investors with spread price guidance in a range from 6.75% to 7.75%, but this has now been fixed at the low-end of 6.75%, we understand.What was a $100 million Class B tranche of notes are now $115 million in size, we’re told.With a base expected loss of 2.54%, the Class B tranche of notes were first offered to investors with spread price guidance in a range from 9% to 10%, but this has now also been fixed at the low-end of 9%.

So, Heritage is set to upsize its new Citrus Re 2023-1 catastrophe bond, perhaps to $235 million, while securing the capital markets backed reinsurance coverage at the bottom-end of the initial price guidance, it now appears.You can read all about this   catastrophe bond and every other cat bond issued in our extensive Artemis Deal Directory.Get a ticket soon to ensure you can attend.