Wintrust Financial enters $50 million revolver, $150 million term loan

By Marisa Wong

Morgantown, W.Va., Sept. 19 – Wintrust Financial Corp. established a $50 million revolving credit facility and a $150 million term facility on Sept. 18, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is administrative agent and lead arranger.

In connection with entry into the credit agreement, all outstanding loans and other obligations under the company’s existing credit agreement with Wells Fargo Bank were paid in full, and the commitments under that agreement were terminated.

All borrowings under the new revolving facility must be repaid by Sept. 17, 2019. As of Sept. 19, Wintrust has no outstanding balance under the revolver.

Wintrust was required to borrow the entire amount of the term loan no later than Sept. 18. All borrowings under the term loan must be repaid by Sept. 18, 2023.

Borrowings under both facilities may be repaid in whole or in part. Beginning Dec. 31 and at the end of each fiscal quarter ending after that, the company will repay the outstanding principal amount of the term loan in equal consecutive installments of $5,357,142.86 and one final installment equal to the remaining balance at maturity.

Borrowings will bear interest at Libor plus 125 basis points.

The credit agreement requires compliance with some financial covenants, including the following:

• Continued “well capitalized” status of each of Wintrust’s bank subsidiaries and on a consolidated basis;

• On a consolidated basis, maintenance as of the last day of any fiscal quarter for the four fiscal quarters ended on that date of a return on average assets ratio of at least 0.65%;

• Maintenance of a zero balance under the revolver for at least 30 consecutive days during the term of the revolver;

• On a consolidated basis, maintenance as of the last day of any fiscal quarter of a ratio of adjusted non-performing assets to primary capital of not more than 17.5%;

• On a consolidated basis, maintenance as of the last day of any fiscal quarter of an adjusted reserve coverage ratio of not less than 70%;

• On a consolidated basis (a) for the company, maintenance as of the last day of each fiscal quarter of a risk-based capital ratio of not less than the sum of the minimum risk-based capital ratio to qualify as “well capitalized” plus 100 bps or (b) for each subsidiary bank, maintenance as of the last day of each fiscal quarter of a risk-based capital ratio of not less than the sum of the minimum risk-based capital ratio to qualify as “well-capitalized” plus 75 bps;

• On a consolidated basis and for each subsidiary bank, maintenance of a tier 1 capital ratio of not less than the minimum tier 1 capital ratio to qualify as “well capitalized” plus, in the case of the company, 75 bps or, in the case of each subsidiary bank, 50 bps;

• On a consolidated basis and for each subsidiary bank, maintenance of a tier 1 leverage ratio of not less than the minimum tier 1 leverage ratio to qualify as “well capitalized” plus, in the case of the company, 75 bps or, in the case of each subsidiary bank, 50 bps;

• Maintenance of a common equity tier 1 ratio of not less than (a) the minimum common equity tier 1 ratio for the company on a consolidated basis or any of its subsidiary banks to qualify as “well capitalized” plus, (b) in the case of the company, 75 bps or, in the case of each subsidiary bank, 50 bps; and

• Maintenance of at least $40 million, in the aggregate, in unencumbered cash, cash equivalents and available for sale securities.

Wintrust is a Rosemont, Ill.-based financial holding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.