Torchmark restates, extends credit agreement, increases commitment

By Tali Rackner

Norfolk, Va., May 18 – Torchmark Corp. and subsidiary TMK Re Ltd. entered into a second amended and restated credit agreement to extend the maturity date of the existing $750 million credit facility to May 17, 2021, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the agent, swingline lender and letter-of-credit administrator.

In addition, the lenders agreed to make revolving loans to Torchmark and to issue, up to a $250 million sublimit, either secured or unsecured letters of credit for either Torchmark or TMK Re, in the form of several letters of credit or fronted letters of credit.

Wells Fargo also agreed to make same-day advances to Torchmark in the form of swingline loans up to a $35 million sublimit.

In addition, the facility was increased to provide for the making of a single term loan to Torchmark up to $100 million.

Revolver borrowings bear interest at Libor plus 90 basis points to 140 bps, based on credit ratings. Term loans bear interest at Libor plus 100 bps to 162.5 bps, also based on ratings.

Under the credit agreement, Torchmark must maintain a maximum ratio of consolidated debt to consolidated capitalization of 0.4 times.

Bank of America, NA and U.S. Bank NA are co-syndication agents; BBVA Compass and SunTrust Bank are co-documentation agents; and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and U.S. Bank NA are joint lead arrangers and bookrunners.

Torchmark is an insurance holding company based in McKinney, Texas, that provides life insurance and supplemental health insurance.

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