Chubb refinances loans with $500 million five-year revolving facility

By Susanna Moon

Chicago, Sept. 28 - Chubb Corp. closed a $500 million five-year revolving credit agreement for unsecured loans Monday with Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. as lead arrangers and bookrunners, according to an 8-K filing with the Securities and Exchange Commission.

Deutsche Bank AG New York Branch is administrative agent, Citibank, NA is syndication agent, and Bank of New York Mellon, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are documentation agents.

The facility replaces the company's $500 million five-year revolver due Oct. 19, 2012. There were no outstanding borrowings under the previous facility at the time of its termination.

Covenants require the company to maintain consolidated shareholder's equity of at least $10 billion.

The corporation may request a credit boost up to twice per year, for a maximum facility size of $750 million.

The agreement is set to expire on Sept. 24, 2017, with an option to request two additional one-year extensions.

Proceeds will be used for general corporate purposes.

Chubb is a holding company for a property and casualty insurance company based in Warren, N.J.

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