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Validus closes $85 million unsecured, $300 million secured facilities
By Tali Rackner
Norfolk, Va., Dec. 10 – Validus Holdings, Ltd. and Validus Reinsurance, Ltd. entered into an $85 million five-year unsecured credit facility and a $300 million five-year secured credit facility on Wednesday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
Both facilities mature Dec. 9, 2020.
The $85 million unsecured facility may be increased up to a total of $150 million.
Borrowings bear interest at Libor plus 112.5 basis points to 175 bps, based on ratings. The commitment fee ranges from 10 bps to 27.5 bps, and the letter-of-credit fee ranges from 112.5 bps to 175 bps.
The $300 million secured facility may be increased by up to an additional $100 million.
Interest is equal to the adjusted Libor rate plus 100 bps. The commitment fee is 12.5 bps, and the letter-of-credit fee is 45 bps.
Both facilities contain covenants that require Validus to maintain a maximum consolidated total debt to consolidated total capital ratio of 0.35 times and maintain a minimum level of consolidated net worth of at least $2.6 billion.
Lloyds Securities Inc. is the syndication agent, and Barclays Bank plc, HSBC Bank USA, NA and SunTrust Bank are co-documentation agents. J.P. Morgan Securities LLC, Barclays, HSBC Securities (USA) Inc. and SunTrust Robinson Humphrey, Inc. are the joint lead arrangers and bookrunners.
In connection with the new facilities, the company terminated its $400 million four-year unsecured credit facility and $500 million four-year secured credit facility, both with JPMorgan as administrative agent.
Validus provides reinsurance and insurance through subsidiaries and is based in Pembroke, Bermuda.
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