Erie Insurance extends maturity, lowers pricing on credit agreements

By Toni Weeks

San Luis Obispo, Calif., Oct. 30 - Erie Indemnity Co. and Erie Insurance Exchange both amended their existing credit agreements on Oct. 25, according to an 8-K filing with the Securities and Exchange Commission.

Erie Indemnity extended the maturity date on its $100 million credit agreement to Nov. 3, 2018, lowered the borrowing costs and eliminated the minimum net worth financial covenant.

Borrowings now bear interest at Libor plus 50 basis points to 100 bps, with the exact margin based on the company's debt to capitalization ratio.

Similarly, Erie Insurance Exchange extended the maturity date on its $300 million revolver to Oct. 25, 2018, lowered borrowing costs and eliminated the minimum statutory surplus covenant.

JPMorgan Chase Bank, NA is the administrative agent, and PNC Bank, NA is the syndication agent for the Erie Indemnity credit facility.

PNC Bank is the administrative agent, and JPMorgan Chase Bank is the syndication agent for the Erie Insurance Exchange credit facility.

PNC Capital Markets LLC and J.P. Morgan Securities LLC are joint lead arrangers and joint bookrunners for both facilities.

Erie Indemnity is a provider of sales, underwriting and administrative services to Erie Insurance Exchange. Both are based in Erie, Pa.

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