Resolution Life Sells Rare AT1-Like Bond With Floored Coupon (1)

Resolution Life sold a rare flavor of Additional Tier 1-like bond with a floored coupon, fresh off the rating upgrades that followed its takeover by Nippon Life Insurance Co.

The Bermuda-based insurer priced a $750 million Ancillary Tier 1 bond with a first call option after seven years, according to a person familiar with the matter who asked not to be identified. The notes have a yield of 6.875%, lowered from the initial marketing level of 7.375%, after the offering drew more than $7.5 billion of orders, the person said.

Ancillary Tier 1 bonds are very similar to the Restricted ...