Daily News: June 13, 2018

JPMorgan Agents $550MM Facility for Kemper


Kemper completed a new $550 million credit agreement consisting of both revolving credit and term loan facilities. JPMorgan Chase served as both administrative and syndication agent on the transaction.

Bank of America and Wells Fargo joined JPMorgan as syndication agents. JPMorgan Chase, Merrill Lynch and Wells Fargo Securities served as joint bookrunners and joint lead arrangers.

The new agreement included a $300 million, five-year revolving credit facility and a $250 million, two-year delayed-draw term loan facility, replacing the current $225 million five-year credit facility scheduled to mature in June 2020. It extended the final maturity date for the revolver to June 2023.

The agreement also included an accordion provision under which Kemper may increase the amount of the facilities up to a shared aggregate maximum of $100 million.

Proceeds from the facilities will be used to provide financing for Kemper’s pending acquisition of Infinity Property and Casualty, as well as future financial flexibility.

“Our new credit agreement reflects today’s strong credit market conditions and incorporates optimized terms, pricing and liquidity flexibility. The new term facility offers attractive bank term financing for our pending acquisition of Infinity,” said James J. McKinney, Kemper’s senior vice president and CFO. “We appreciate our banks’ continued ongoing commitment to Kemper.”

Kemper is a nationwide insurer that provides personalized solutions for individuals, families and businesses. It currently employs 20,000 agents and brokers and 5,550 associates.