(Bloomberg) ? Amlin, a Lloyd?s of London insurer of spacecraft and yachts, is raising ?230 million ($411.4 million) in long-term debt to refinance expansion in Bermuda.

The debt issue is redeemable on December 19, 2016, and will pay an initial annual interest rate of 6.5 percent, the company said in a Regulatory News Service statement yesterday.

The issue was ?heavily oversubscribed? and ?substantially lengthens the maturity profile of our debt financing and strengthens our balance sheet,? said group finance director Richard Hextall in the statement. The company expects to repay a bridge loan of ?150 million. Amlin created a Bermuda-based company in December to capitalise on rising premium rates following US hurricanes last year.

Insurers have been establishing units in Bermuda to take advantage of lower regulation compared with the UK, favourable tax treatment and electronic trading.

Barclays Capital and JP Morgan Cazenove managed the issue.