LAKESIDE RE OVERSUBSCRIBED

Lakeside Re II, a $225m three-year catastrophe bond issued by Zurich Financial Services to replace the expiring Lakeside Re I, has been oversubscribed, reports Munich Re. The German reinsurer acted as joint lead structuring agent, placing the issue with institutional investors in the EU and Switzerland via Munich Re Capital Markets. The new bond pays a coupon of 7.75% plus the yield on the underlying money market funds. Standard & Poor's has assigned a double B minus issue-level rating. The bond covers losses in excess of $500m per Californian earthquake.