JPMorgan Chase served as administrative agent and issuing bank on a $350 million term loan facility and a $400 million revolving credit facility for AmTrust Financial Services.
According to a related 8-K filing, KeyBank and Fifth Third Bank served as co-syndication agents on the transaction, while Bank of America, BMO Harris Bank, Regions Bank and U.S. Bank acted as co-documentation agents.
The credit agreement also included a letter of credit sublimit of $200 million on the revolver, with an expansion feature of up to an additional $200 million. P
AmTrust plans to use the proceeds for working capital, acquisitions and general corporate purposes, to pay outstanding debt under its existing credit facility and to repurchase outstanding convertible debt.
The Credit Agreement has a maturity date of November 29, 2023.
Borrowings under the agreement bear interest at either the alternate base rate or the LIBO rate. ABR borrowings will bear interest at the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus 0.5% or (c) the adjusted LIBO rate for a one-month interest period on such day plus 1%, plus a margin ranging from .5% to 1.0%, adjusted on the basis of the company’s consolidated leverage ratio.
Eurodollar borrowings bear interest at the adjusted LIBO rate for the interest period in effect plus a margin ranging from 1.5% to 2.0%, adjusted on the basis of the company’s consolidated leverage ratio.
Certain of the lenders and their affiliates have provided from time to time and may continue to provide investment banking, commercial banking, financial and other services to AmTrust or its affiliates, including letters of credit, depository and account processing services.
Headquartered in New York, AmTrust Financial Services is a multinational insurance holding company which offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage.
