New facility comprises of minimum risk-based capital ratios for Unitrin’s insurance subsidiaries
Unitrin has entered into a new $245 million, three-year revolving credit facility that expires on October 30, 2012. The new facility replaces Unitrin’s facility that was set to expire on June 30, 2010.
The new facility contains certain financial covenants including limits on total debt to total capitalisation, consolidated net worth and minimum risk-based capital ratios for Unitrin’s insurance subsidiaries.
The proceeds under the agreement can be used for general corporate purposes, including the repayment of existing indebtedness.
Don Southwell, president and CEO of said: “We are pleased to have entered into one of the first three-year revolving credit facilities this year for a company whose primary business is insurance. It is important to note that this new facility extends well beyond the November 2010 due date of our $200 million Senior Notes.”
Wells Fargo Securities served as joint lead arranger and Sole Bookrunner on the facility while JP Morgan Securities served as joint lead arranger.
Unitrin is a financial services company focused on creating shareholder value by providing through its subsidiaries an array of insurance products and services.