Reinsurance Group gets up to $850 million five-year credit agreement

By Tali Rackner

Norfolk, Va., Sept. 29 – Reinsurance Group of America, Inc. entered into an up to $850 million credit agreement on Sept. 25, replacing a former credit agreement scheduled to expire on Dec. 15, 2015, according to an 8-K filing with the Securities and Exchange Commission.

Under the credit agreement, Reinsurance Group can borrow and obtain letters of credit for general corporate purposes in dollars, euros, British pounds, Japanese yen, Canadian dollars or Hong Kong dollars.

JPMorgan Chase Bank, NA is the administrative agent, swingline lender and letter-of-credit issuer.

The credit agreement, which expires on Sept. 25, 2019, may be increased to provide for up to an additional $150 million of borrowings and letters of credit.

Borrowings will bear interest at Libor plus a margin of 90 basis points to 157.5 bps.

There is also a facility fee ranging from 10 bps to 30 bps and a letter of credit fee ranging from 77.5 bps to 145 bps. During an event of default, interest may accrue at a rate equal to 2% above the interest rates otherwise applicable to each loan outstanding under the credit agreement at that time.

In addition, upon the occurrence of a change of control, one or more lenders may withdraw from the credit agreement, and if agreed upon by a majority of the lenders, the credit agreement will terminate and Reinsurance Group must prepay all outstanding amounts owing thereunder and cash collateralize any outstanding letters of credit.

As of Sept. 24, Reinsurance Group had no borrowings outstanding and roughly $61.2 million of letters of credit issued under the former credit agreement. The letters of credit are either being cancelled or replaced with letters of credit issued under the credit agreement.

Bank of America, NA, U.S. Bank NA and Wells Fargo Bank, NA are joint syndication agents; and Barclays, HSBC Bank USA, NA, KeyBank NA, Mizuho Bank, Ltd., Royal Bank of Canada, Bank of Tokyo-Mitsubishi UFJ, Ltd. and UBS AG, Stamford Branch are co-documentation agents. J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., U.S. Bank and Wells Fargo Securities, LLC are co-lead arrangers and joint book managers.

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

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