Enstar signs $1 billion credit agreement

22-08-2018

Enstar Group and some of its subsidiaries, have as borrowers and as guarantors entered into a five year unsecured revolving credit agreement with a group of lenders.

The lenders include National Australia Bank (NAB) as administrative agent; NAB, Barclays Bank and Wells Fargo Securities as joint lead arrangers and joint bookrunners; Barclays and Wells Fargo Bank, National Association as syndication agents; and NAB as documentation agent.

The credit agreement provides for a five-year unsecured revolving credit facility (expiring in August 2023) under which the company is permitted to borrow up to an aggregate of $600 million, to fund permitted acquisitions and for general corporate purposes.

According to the credit agreement, the company has the option to increase the commitments under the facility up to an aggregate of $400 million from the existing lenders or through the addition of one or more new lenders, subject to the terms of the agreement.

Borrowings under the facility will bear interest at a rate based on the company’s long term senior unsecured debt ratings.

The credit agreement imposes various financial and business covenants on the company and its subsidiaries, including certain limitations on mergers and consolidations, acquisitions, indebtedness and guarantees, restrictions as to dispositions of stock and assets, and limitations on liens. The credit agreement permits the company to enter into guarantees in the ordinary course of its insurance business without prior approval.

Enstar Group, credit, agreement, group, lenders, unsecured, revolving, borrowers

Bermuda Re