On March 3, 2014, Willis Securities, a wholly owned indirect subsidiary of Willis Group Holdings Public Limited and the United States operating company of Willis Capital Markets & Advisory, entered into a revolving note and cash subordination agreement, with SunTrust Bank as administrative agent, BMO Harris Bank as syndication agent, Lloyds Bank as documentation agent and the lenders party thereto, according to an 8-K filing dated March 4, 2014.
Pursuant to the credit agreement, the lenders provided Willis Securities with $300 million revolving note facility, which will be available for drawing from March 3, 2014 through March 3, 2015. The aggregated unpaid principal amount of all advances must be repaid on or before March 4, 2016, one year after the end of the credit period.
Proceeds under the facility will be used for regulatory capital purposes related to securities underwriting only, which will allow Willis Securities to meet or exceed capital requirements of regulatory agencies, self-regulatory agencies, exchanges and their clearinghouses.
Advances under the facility bear interest at a rate equal to, for Eurocurrency Rate Loans, LIBOR plus 1.50% to 2.25%, and for Base Rate Loans, the highest of the Federal Funds Rate plus 1/2 of 1%, the “prime rate” as announced by SunTrust Bank, and LIBOR plus 1.00%, plus 0.50% to 1.25%, in each case, based upon Willis Group Holdings Public Limited Company’s guaranteed senior unsecured long-term debt rating. In addition, Willis Securities will also pay a commitment fee equal to 0.25% to 0.40% of the committed amount of the facility that has not been borrowed.