First American restates credit agreement for $700 million revolver

By Marisa Wong

Madison, Wis., May 16 - First American Financial Corp. entered into an amended and restated credit agreement with JPMorgan Chase Bank, NA as administrative agent for a $700 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The agreement, completed on May 14, amends and restates the company's $600 million senior unsecured credit agreement dated April 17, 2012.

Revolving loan commitments under the restated credit agreement will terminate on May 14, 2019.

The credit agreement includes an expansion option that allows the company to increase revolving commitments or add term loan tranches in an aggregate amount not to exceed $150 million.

Incremental term loans, if made, may not mature prior to the revolving commitment termination date, provided that amortization may occur prior to that date. Incremental term loans will rank pari passu in right of payment with revolving loans.

Revolver borrowings will bear interest at Libor plus an applicable spread based on the company's ratings. The spread ranges from 162.5 basis points to 200 bps.

The interest rate for term loans will be set when those loans are made and may differ from pricing for the revolver.

Proceeds may be used for general corporate purposes.

The financial services, title insurance and settlement company is based in Santa Ana, Calif.

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