RenaissanceRe renews agreement for $500 million five-year revolver

By Marisa Wong

Los Angeles, Nov. 22 – RenaissanceRe Holdings Ltd. renewed its revolving credit facility by entering into a third amended and restated credit agreement on Nov. 18 with Wells Fargo Bank, NA as fronting bank, letter-of-credit administrator and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a revolving commitment of $500 million.

The company has the right to increase the size of the facility to $700 million.

The scheduled commitment maturity date of the credit agreement is Nov. 18, 2027.

Amounts borrowed bear interest at term SOFR plus a margin.

The credit agreement incorporates an ESG option that allows the company, in consultation with the sustainability structuring agent, to identify environmental, social and governance related key performance indicators (KPIs) and establish associated annual sustainability performance targets (SPTs). This provision gives the company the option – but not the obligation – to incorporate the KPIs into pricing incentives at a future date, whereby achieving SPTs would reduce funding costs of the revolving loans.

The credit agreement contains some financial covenants. These financial covenants generally provide that consolidated debt to capital should not exceed the ratio of 0.35 to 1 and that the consolidated net worth of the company should equal or exceed $3.97 billion.

Wells Fargo Securities, LLC and Barclays Bank plc are joint lead arrangers and joint lead bookrunners.

Barclays is syndication agent and sustainability structuring agent.

RenaissanceRe is a Pembroke, Bermuda-based property catastrophe reinsurer.

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