First American Financial arranges four-year $600 million revolver

By Toni Weeks

San Diego, April 17 - First American Financial Corp. entered into an agreement for a four-year $600 million senior secured revolving credit facility, replacing the company's $400 million revolver that was due June 1, 2013.

According to a press release, the facility, which matures April 17, 2016, was oversubscribed during syndication, prompting the company to exercise its option to increase the facility's size to $600 million from $500 million.

Pricing under the new facility reflects a reduction in the interest rate of 75 basis points. The financial covenants mirror those of the prior facility, and other provisions no longer apply at the current ratings or have become less restrictive or removed.

The facility provides for a release of the security if the company meets specific ratings levels.

J.P. Morgan Securities LLC, U.S. Bank NA and Wells Fargo Securities, LLC served as joint lead arrangers and joint bookrunners.

First American Financial provides title insurance and settlement services to the real estate and mortgage industries and is located in Santa Ana, Calif.

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