Argo Group International amends revolver, upsizes to $220 million

By William Gullotti

Buffalo, N.Y., Dec. 22 – Argo Group International Holdings, Ltd. entered amendment number three to its credit agreement with JPMorgan Chase Bank, NA as administrative agent on Dec. 20, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The third amendment to the credit agreement increased the revolver’s commitments to $220 million from $200 million.

The reference rate was updated to SOFR from Libor, with borrowings now bearing interest at SOFR plus a margin ranging from 125 basis points to 212.5 bps.

There is a commitment fee that ranges from 15 bps to 37.5 bps, a letter-of-credit fee ranging from 125 bps to 212.5 bps and a secured letter-of-credit fee ranging from 30 bps to 57.5 bps.

The fees and margin are determined by Argo’s debt rating.

The amendment also permits the sale of Argo Underwriting Agency Ltd. and its subsidiaries to Ohio Farmers Insurance Co. in accordance with the share purchase agreement dated Sept. 8, subsequently removing said entities as borrowers under the credit agreement.

The maturity date remains Nov. 2, 2023, including the original one-year extension option that may be exercised with lender approval.

Pembroke, Bermuda-based Argo Group is an international underwriter of specialty insurance and reinsurance products in the property and casualty market.

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