Unum enters into restated $500 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, April 21 – Unum Group entered into an amended and restated credit agreement for a five-year $500 million senior unsecured revolving credit facility on April 15, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the administrative agent, letter-of-credit agent, fronting bank and swingline lender; Bank of America, NA and JPMorgan Chase Bank, NA are co-syndication agents; Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase are joint lead arrangers and joint bookrunners; and Citibank, NA, Credit Suisse AG, New York Branch, Goldman Sachs Bank USA, Bank of New York Mellon, and U.S. Bank NA are co-documentation agents.

Under the terms of the agreement, the total commitments may be increased up to $800 million. There is a $100 million letter-of-credit sublimit and a $50 million sublimit for swingline loans.

The company may request to extend the term by one year on up to two occasions.

Proceeds of the facility will be used for working capital and general corporate purposes.

The company may borrow under the facility until April 15, 2027. On the commitment termination date, the revolving loans become due and payable in full.

Interest is equal to an adjusted term SOFR rate plus 112.5 basis points to 187.5 bps, depending on the company’s debt rating. The commitment fee ranges from 12.5 bps to 27.5 bps, also based on the debt rating.

Key performance indicators may be established with respect to some environmental, social and governance targets in consultation with the sustainability structuring agent, BofA.

The agreement contains financial covenants requiring the company to maintain a maximum total leverage ratio and a minimum consolidated net worth.

As of April 15, there were no borrowings and $400 million of letters of credit issued under the agreement.

Unum is an employee benefits provider based in Chattanooga, Tenn.

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