Travelers in the Market with $250 Million Longpoint II Cat Bond

Chris Westfall
Chris Westfall

U.S.-based P/C carrier Travelers is currently marketing a $250 million multi-year catastrophe bond dubbed Longpoint II to cover Northeast Hurricane and other risks, according to a senior company executive.

Longpoint II is structured in two tranches of three and four years respectively. Although pricing is still being set, the issuer expects to pay approximately 525 to 600 basis points over LIBOR.

Book runners for the issue include Goldman Sachs, Swiss Re and Guy Carpenter, among other firms.

The bond is currently in the marketing phase and is expected to close within the next week.

The structure will look to replace the existing Longpoint Re Ltd., a $500 million catastrophe bond that was created to 2007 and is set to expire in 2010.

The original Longpoint bond is a Cayman insurance company and used an index-based trigger offered by Risk Management Solutions (RMS).