Allied World enters into $200 million five-year unsecured revolver

By Tali Rackner

Norfolk, Va., June 16 – Allied World Assurance Co. Holdings, AG entered into a $200 million five-year senior unsecured revolving credit facility agreement on June 13, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the administrative agent and swingline lender, and Citibank, NA is the syndication agent. Wells Fargo Securities, LLC and Citigroup Global Markets Inc. are joint lead arrangers and bookrunners.

The credit agreement may be increased by up to $150 million.

Borrowings in the form of swingline loans are subject to a sublimit of $25 million included within the $200 million aggregate commitment.

Interest is equal to Libor plus 112.5 basis points to 175 bps, based on Allied World’s credit ratings. The commitment fee ranges from 12.5 bps to 25 bps, also depending on ratings.

Proceeds will be used for general corporate purposes.

The credit agreement requires that all revolving loans be repaid in full no later than five years from closing and that any swingline loans be repaid in full no later than the earlier of: (a) 10 business days after the swingline loan is made; and (b) five years after closing.

Certain financial covenants require Allied World to maintain a maximum ratio of consolidated debt to total capitalization as of the last day of any fiscal quarter or year of 0.35 times.

The facility replaces the previous four-year senior secured credit facility dated June 7, 2012.

The insurance and reinsurance company is based in Zug, Switzerland.

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