Paulette had maximum sustained winds of 75 mph (120 kph) as of 11 p.m. Saturday just 385 miles (615 kilometers) southeast of Bermuda, the U.S. National Hurricane Center in Miami said.
It was forecast to be a dangerous hurricane in the coming hours.
Storm surge, coastal flooding and rainfall totals up to 6 inches (15 centimeters) were likely for the territory. The hurricane was moving to the west-northwest at 14 mph (22 kph) but expected to make a turn toward the north on Monday, crossing near or over Bermuda on Monday morning.
The day has been corrected to Saturday in 2nd paragraph.