Daily News: June 7, 2019

PNC, JPMorgan Expand Kemper Facility to $450MM


Kemper completed a new term loan credit agreement with an aggregate principal amount of up to $50 million and a $100 million increase of its revolving credit borrowing capacity to $400 million

The increased credit commitment utilized the accordion feature under Kemper’s existing credit agreement and resulted in an increase of the available revolving credit commitments thereunder from $300 million to $400 million. As of the current date, there are no outstanding borrowings under the existing revolving credit facility, which is scheduled to mature in June 2023.

A portion of the new term loan, along with other funds, will be used to redeem all $150 million aggregate principal amount of its 7.375% Subordinated Debentures due 2054.

The new term loan agreement and expanded credit capacity under the revolver will provide Kemper with future financial flexibility.

PNC Bank served as administrative agent for the new term loan credit agreement. Additionally, PNC Capital Markets and BMO Capital Markets served as joint lead arrangers, with the former also serving as sole bookrunner.

JPMorgan Chase served as administrative agent and syndication agent for the increase to the revolver. Bank of America and Wells Fargo Bank served as syndication agents. JPMorgan Chase, Merrill Lynch, and Wells Fargo Securities served as joint bookrunners and joint lead arrangers.

On May 31, 2019, Kemper also repaid the remaining $35 million of aggregate principal outstanding under its existing term loan due June 29, 2020 with cash on hand.

Kemper is one of the nation’s leading specialized insurers.