Prudential Financial closes new $2 billion letter-of-credit facility

By Aleesia Forni

Columbus, Ohio, Oct. 12 - Prudential Financial Inc. and its subsidiary, Prudential New Jersey Captive Insurance Co., entered into a new $2 billion syndicated letter-of-credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Proceeds will be used to fund New Jersey Captive's reinsurance agreement.

This facility has a three-year availability period and may be renewed, increased or decreased on an annual basis.

Any letters of credit outstanding at the end of the availability period will amortize on a straight-line basis until the facility terminates in 2018, unless the letter of credit amount decreases quicker or is no longer necessary at all under the terms of the company's reinsurance arrangement.

Prudential Financial is a Newark, N.J.-based financial services company.

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