The storm turned to the northeast, passing close to Bermuda as it intensified to reach peak winds of 50 mph (80 km/h) on October 11.

[1] The system gradually became better organized,[2] and though there were no signs of tropical development on October 9, computer models suggested a subtropical storm could form.

Based on the broad wind field and the cloud signature, it is estimated the system organized into Subtropical Storm Nicole on October 10 while located about 140 miles (230 km) southwest of Bermuda.

[4] A mid-level trough turned the storm northeastward, and early on October 11 it passed about 60 miles (97 km) northwest of Bermuda.

[1] Shortly after passing Bermuda, Nicole developed persistent deep convection near the center, while Advanced Microwave Sounding Unit overpasses indicated the potential of a warm core within the system.

As the storm accelerated northeastward under the influence of a large extratropical cyclone south of Nova Scotia, it briefly reached peak winds of 50 mph (80 km/h).

[1] On October 9, one day prior to the storm's formation, the Bermuda Weather Service issued a gale warning for the island.

[1] Nicole and the precursor extratropical storm dropped heavy precipitation, amounting to 5.86 inches (149 mm) over a three-day period at the Bermuda International Airport.

[6] Poor weather conditions from Nicole forced the cancellation of several events at the tourist-driven Bermuda Music Festival, including acts by Isaac Hayes, Gerald Albright, and Anita Baker.

The strong winds uprooted trees and downed power lines and combined with rough seas to cause cancellations for ferry crossings and restricted access to the Confederation Bridge.