Enstar Group Limited Enters into Three-Year Unsecured $500 Million Term Loan Credit Agreement
January 02, 2019 at 09:17 pm
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On December 27, 2018, Enstar Group Limited as borrower and certain of its subsidiaries as guarantors entered into a three-year unsecured $500 million term loan credit agreement with the lenders party thereto and Wells Fargo Bank, National Association as administrative agent. Wells Fargo Securities, LLC, National Australia Bank Limited (NAB") and SunTrust Robinson Humphrey Inc. acted as joint lead arrangers and joint book-runners, and NAB and SunTrust Bank acted as co-syndication agents. The Credit Agreement provides for a three-year unsecured $500 million term loan facility, pursuant to which the Company borrowed the full $500 million in a single draw on December 27, 2018. The proceeds of the Facility may be used for general corporate purposes, including the funding of permitted acquisitions and investments. Pursuant to the Credit Agreement, the Company may increase the principal amount of the Facility up to $150 million in the aggregate from the existing Lenders or additional lenders, subject to the terms of the agreement. Term loans under the Facility 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.
Enstar Group Limited is a global (re)insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, and Australia. Its segments include Run-off, Assumed Life, Investments, and Legacy Underwriting. The Run-off segment consists of its acquired property and casualty and other (re)insurance business. Assumed Life segment consists of life and catastrophe business that it assumed via the acquisition of the controlling interest in Enhanzed Reinsurance, Ltd. (Enhanzed Re). Investments segment consists of its investment activities and the performance of its investment portfolio, excluding those investable assets attributable to its underwriting segment. Its services to the re/insurance industry range from full-service, incentive-based run-off management to client-specific solutions, such as claims inspection and validation, reinsurance asset collection, syndicate management, and IT consulting.