Raymond James repays April 2012 facility, gets $100 million revolver

By Toni Weeks

San Diego, Nov. 16 - Raymond James Financial, Inc. subsidiary RJ Securities, Inc. entered into a new $100 million revolving credit agreement due April 2, 2015 on Wednesday with Regions Bank, according to an 8-K filed Friday with the Securities and Exchange Commission.

The loan will bear interest at Libor plus 275 basis points. Interest will increase by 200 bps in the event of a payment default.

The loan may be prepaid without penalty as long as Raymond James maintains a loan balance of at least $5 million.

The maximum amount available under the agreement cannot exceed 70% of the value of the company's pledged auction-rate securities, the filing noted. As a result of recent redemptions of auction-rate securities, the maximum amount available under the facility is $97.7 million as of Nov. 14. If the loan balance exceeds the 70% trigger, Raymond James must prepay a principal amount to bring the balance under 70% of the collateral value.

Borrowings under the credit line, which are guaranteed by the parent company, will be used for working capital and general corporate purposes.

At closing, Raymond James Investments, LLC, RJ Securities, Inc., RJC Forensics, LLC, RJC Event Photos, LLC and Morgan Properties, LLC subsidiaries repaid its credit agreement dated April 2, 2012 with Regions Bank.

Raymond James is a St. Petersburg, Fla.-based financial services firm.

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