Boston-Based Insurance Company Secures $1 Billion Credit Facility
Boston-based insurance company, backed by a consortium of banks, has secured a $1 billion credit facility to support its general corporate purposes and provide standby/CP support. The facility, split into two parts, provides a revolving credit with varying pricing tiers based on the company's credit ratings. The credit facility was arranged by Fleet National Bank, Chase Manhattan, and Citicorp USA, with Bank One acting as the documentation agent and Fleet National Bank and Chase Manhattan as book managers.
Key Takeaways:
- The credit facility is worth $1 billion, divided into two parts: Part A ($500 million) and Part B ($500 million).
- The facility is a revolving credit, allowing the insurance company to draw down funds as needed and repay them when required.
- Pricing for the facility is based on the company's credit ratings, with four pricing tiers: level I (AAA or higher), level II (AA-/Aa3 or higher), level III (A+/A1), and level IV (lower than A+/A1).
- The utilization fee for both parts of the facility is 5 basis points (bps).
- Facility fees for both parts are tiered, ranging from 4 bps (level I) to 7 bps (level IV) for Part A and 6 bps (level I) to 9 bps (level IV) for Part B.
- Commitment fees for both parts are also tiered, ranging from 175 bps (level I) to 300 bps (level IV) for both parts.
Statistics:
- Total credit facility amount: $1 billion.
- Part A amount: $500 million.
- Part B amount: $500 million.
- Facility maturity dates: August 2, 2001 (Part A) and August 2, 2005 (Part B).
- UIT (unit of trade): 1 million.
- Loan structure: Callable quarterly.
Sources:
- Fleet National Bank
- Chase Manhattan
- Citicorp USA
- Bank One
- Barclays Bank
- BNP Paribas
- Comerica Bank
- Credit Suisse First Boston
- Deutsche Bank
- Royal Bank of Canada
- Scotiabank
- Wachovia Bank
- BankAmerica
- State Street Bank
- Westdeutsche Landesbank
- Northern Trust
- Bank of New York