Tower Group amends pricing and covenants under credit facility

By Marisa Wong

Madison, Wis., Oct. 15 - Tower Group, Inc. amended pricing for its amended and restated credit facility dated Feb. 15, 2012 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The applicable rate for Libor loans is 300 basis points from Aug. 29 through Oct. 31 and steps up to 400 bps from Nov. 1 through Nov. 30, to 500 bps from Dec. 1 through Dec. 31, to 600 bps from Jan. 1 through Jan. 31 and to 700 bps beginning Feb. 1.

Under the amendment, lenders also agreed to waive the company's non-compliance with some covenants in the credit agreement regarding the company's delivery of financial statements and related compliance certificates.

The lenders and the company also agreed to amend some debt covenants under the facility.

Tower entered into the fifth amendment to the credit facility on Oct. 11.

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

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