Erie Indemnity enters up to $100 million revolving credit facility

By Jennifer Chiou

New York, Nov. 8 - Erie Indemnity Co. entered into on Nov. 3 a credit agreement with JPMorgan Chase Bank, NA as administrative agent, providing for an up to $100 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

PNC Bank, NA is among the lenders.

The agreement will expire on Nov. 3, 2016. It contains restrictive covenants, including limitations on incurring indebtedness, liens and encumbrances.

The undrawn revolver includes up to $25 million for standby letters of credit, the filing said.

The new facility replaces the company's prior $100 million line of credit with PNC.

Based on Erie's current debt to capital ratio, borrowings will bear interest at Libor plus 62.5 basis points. There is a quarterly commitment fee of 8 bps for any unused portion.

Proceeds are slated for working capital.

The Erie, Pa.-based company offers auto insurance quotes, homeowners, life and business insurance.

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