Tower Group completes new $125 million revolving credit facility

By Sara Rosenberg

New York, May 17 - Tower Group Inc. closed on a new $125 million three-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan and Bank of America acted as the joint lead arrangers and bookrunners on the deal that was completed on May 14, with Bank of America the administrative agent.

Initial pricing on the revolver is Libor plus 275 basis points with a 50 bps commitment fee. Pricing can range from Libor plus 250 bps to 325 bps, and the commitment fee can range from 40 bps to 62.5 bps, based on debt to capitalization.

There is a $50 million accordion feature.

Proceeds will be used for general corporate purposes.

Tower Group is a New York-based provider of commercial, personal, and specialty property and casualty insurance products and services.

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