Hartford Financial enters into $1 billion five-year revolver with BofA

By Jennifer Chiou

New York, Nov. 3 – The Hartford Financial Services Group, Inc. entered into on Oct. 31 a $1 billion five-year revolving credit facility with Bank of America, NA as administrative agent, according to a 424B5 filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA, Citibank, NA, U.S. Bank NA and Wells Fargo, NA acted as syndication agents with Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bank NA and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners.

The filing stated that the facility replaced the company’s $1.75 billion four-year revolving credit facility dated Jan. 6, 2012.

The new loan provides for revolving loans as well as letters of credit, with a $250 million sublimit on outstanding letters of credit.

There is a $500 million accordion.

The credit agreement will expire on Oct. 31, 2019.

The 8-K stated that Hartford Financial must maintain a minimum consolidated net worth of $13.5 billion. The company is also subject to a limit on consolidated total debt to consolidated total capitalization of 35% and consolidated total debt of its subsidiaries to consolidated total capitalization of 10%.

Based in Hartford, Conn., the Hartford Financial Services Group is a financial services holding company and parent company for the Hartford Insurance Co.

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