RenaissanceRe amends facility for two letters of credit, extension

By Marisa Wong

Morgantown, W.Va., Nov. 10 – RenaissanceRe Holdings Ltd. subsidiary Renaissance Reinsurance Ltd. entered into a third amendment to its secured credit facility with Bank of Montreal, London Branch, Citibank Europe plc and ING Bank NV, London Branch for two letters of credit, according to an 8-K filing with the Securities and Exchange Commission.

The letters of credit are denominated in dollars and pounds, with stated amounts of $380 million and £90 million, respectively.

The two letters of credit will be used to support business written by Renaissance Reinsurance’s Lloyd’s syndicate, Syndicate 1458.

Under the amendment, the term of the facility was extended to four years from the date ING issues a notice to the beneficiary of the letters of credit. The notice is required to be given no later than Dec. 31, 2016; notice was previously required to be given no later than Dec. 31, 2015.

In addition, the amendment extends the latest date on which the company will become obligated to collateralize the facility at 100% to Dec. 31, 2017 from Dec. 31, 2016. Under the credit agreement, Renaissance Reinsurance is obligated to pledge to the lenders at all times during the term of the facility certain eligible securities with a collateral value. That collateral value is, until a full collateralization event occurs, either (a) greater than or equal to 100% of the aggregate amount of the then-outstanding letters of credit or (b) greater than or equal to 60% but less than 100% of the aggregate amount of the then-outstanding letters of credit. Once a full collateralization event occurs, the company is obligated to collateralize the facility at 100%.

RenaissanceRe Holdings Ltd. is a reinsurance company based in Pembroke, Bermuda.

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