Swiss Re issues cat bond for North Atlantic hurricane, California earthquake

Swiss Re has issued a US$150-million cat bond for North Atlantic hurricanes, European windstorms and California earthquakes.
Swiss Re has entered into a transaction with Successor X Ltd. to receive up to US$150 million of payments in the event of certain natural catastrophes, including those outlined above, a release says.
The transaction covers a one-year risk period ending in late 2010.
Successor X is a special purpose vehicle with a flexible program structure that will allow subsequent issuance of notes.
The Successor offering consists of three series of notes of US$50 million each. One class of the notes is rated “B-” by Standard & Poor’s; the other classes were not rated.
All classes of notes were issued as discount notes. Instead of purchasing the note at 100% face value, investors purchase it at a discount and expect to receive 100% of the face value at maturity if no trigger event occurs.