HCC restates $90 million standby LoC facility with RBS, Barclays

By Marisa Wong

Madison, Wis., Nov. 28 - HCC Insurance Holdings, Inc. amended and restated its $90 million standby letter-of-credit facility agreement dated Nov. 26, 2010 with Royal Bank of Scotland plc and Barclays Bank plc, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The restated facility, completed Nov. 21, may only be used for enabling funds at Lloyd's of London to be provided for HCC's 2013 and prior years of account at Lloyd's.

The facility permits HCC to obtain letters of credit in an aggregate amount not exceeding $90 million. The beneficiary of any letters of credit issued under the facility will be Lloyd's.

The final maturity date for letters of credit is no later than Dec. 31, 2016.

According to the filing, a $90 million letter of credit was issued to Lloyd's on Nov. 23.

HCC paid an arrangement fee equal to 0.25% of each bank's commitment under the facility and will pay a commitment commission of 0.15% per year. HCC will also pay a letter-of-credit fee of 1.05% per year.

HCC is a specialty insurance group based in Houston.

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