J.P. Morgan, Others, Provide $600 Million to First American
First American Financial Corporation, a global provider of title insurance and settlement services for residential and commercial real estate transactions, announced that it has entered into a new four-year $600 million senior secured revolving credit facility maturing April 17, 2016. J.P. Morgan Securities, U.S. Bank National Association and Wells Fargo Securities served as joint lead arrangers and joint bookrunners under the new facility.
The facility was oversubscribed during the syndication and the company exercised its option to increase the size of the facility from $500 million to $600 million in connection with the closing. This facility replaces the company’s $400 million revolving facility that would have matured on June 1, 2013.
Pricing under the facility reflects a 75 basis point reduction from the prior facility. The financial covenants contained in the facility mirror those of the prior facility, while certain other provisions no longer apply at current ratings, have become less restrictive or have been removed. In addition, the facility provides for a release of the security if the company meets certain ratings levels.