RenaissanceRe enters new $150 million revolver, amends LoC facility

By Marisa Wong

Madison, Wis., May 22 - RenaissanceRe Holdings Ltd. entered into a credit agreement with Wells Fargo Bank, NA as administrative agent, Citibank, NA as syndication agent and Wells Fargo Securities, LLC and Citigroup Global Markets Inc. as joint lead arrangers and joint lead bookrunners, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The credit agreement became effective May 17 and replaces the company's credit agreement dated April 22, 2010, which was terminated upon closing of the new facility.

The new facility is due May 17, 2015 and consists of a $150 million revolving facility that may be increased to $250 million.

The company and its insurance subsidiaries may issue up to $150 million of letters of credit, and the company's non-insurance subsidiaries have a $50 million sublimit for letters of credit.

Interest is equal to Libor plus a margin, based on the company's senior unsecured long-term debt ratings.

In addition to customary covenants, the credit agreement contains certain financial covenants. These financial covenants provide that the ratio of consolidated debt to capital not to exceed 0.35 to 1 and that the consolidated net worth of the company and Renaissance Reinsurance Ltd. be equal to or exceed $2.2 billion and $1.1 billion, respectively.

According to the filing, RenaissanceRe and certain of its affiliates, RRL, Renaissance Reinsurance of Europe, DaVinci Reinsurance Ltd. and Glencoe Insurance Ltd., also entered into a fourth amended and restated reimbursement agreement on May 17 with Wells Fargo as the administrative agent.

The reimbursement agreement amends and restates the third amended and restated reimbursement agreement dated April 22, 2010. The prior agreement was terminated on the effective date of the new agreement.

The new reimbursement agreement is scheduled to expire on May 17, 2015 and will continue as the company's principal secured letter-of-credit facility. Specifically, the agreement provides for commitments totaling $450 million, which may be increased up to $800 million, subject to certain conditions.

The reimbursement agreement contains certain financial covenants requiring RenaissanceRe and DaVinci to maintain a minimum net worth of $1.8 billion and $674 million, respectively, as calculated at the end of each fiscal year.

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

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