Reinsurance Group of America enters into new $850 million revolver

By Mary-Katherine Stinson

Lexington, Ky., March 16 – Reinsurance Group of America, Inc. on March 13 signed a new revolving credit agreement with Bank of America, NA as administrative assistant, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

Under the agreement, the company may borrow and obtain letters of credit for general corporate purposes in dollars, sterling, Canadian dollars, euros, Hong Kong dollars and yen in an overall credit facility totaling up to $850 million.

The agreement may be increased up to an additional $350 million at the company’s election.

Based on ratings, the five-tier pricing grid ranges from SOFR plus 79.5 basis points to 130 bps.

The facility fee shifts between 8 bps and 20 bps.

The initial rate is at the third tier, SOFR plus 100 bps with a 12.5 bps facility fee.

Amounts may be borrowed, repaid and reborrowed until the expiration of the agreement, which is five years from closing. Voluntary prepayments and commitments reductions are allowed without penalty subject to minimum dollar requirements.

The revolver matures March 13, 2028.

Upon a change of control one or more lenders may withdraw and if agreed on by a majority of lenders the agreement will terminate.

JPMorgan Chase Bank, NA, U.S. Bank NA and Wells Fargo Bank, NA are joint syndication agents and joint bookrunners.

Barclays, HSBC Bank USA, NA, KeyBank NA, Mizuho Bank, Ltd., MUFG Bank, Ltd., Royal Bank of Canada and Sumitomo Mitsui Banking Corp. are the co-documentation agents.

BofA Securities, Inc., JPMorgan Chase Bank, NA, U.S. Bank NA and Wells Fargo Securities, LLC are the joint lead arrangers.

Proceeds may be used for working capital and general corporate purposes.

This agreement replaces the company’s former credit agreement dated as of Aug. 21, 2018 with U.S. Bank NA, as administrative agent and a syndicate of financial institutions which allowed the company to borrow and obtain letters of credit up to $850 million. It was set to mature Aug. 21, 2023.

As of closing, the company had no borrowings and a single letter of credit of approximately $975,000 outstanding issued under the former credit agreement.

There were no early termination penalties.

Reinsurance Group is a Chesterfield, Mo.-based reinsurance company.

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