Allstate gets $750 million five-year revolver with increase provision

By Cady Vishniac

Detroit, Nov. 17 – Allstate Insurance Co. and Allstate Life Insurance Co. have entered into a new $750 million unsecured revolving credit facility expiring Nov. 16, 2025 with a $500 million increase provision, according to an 8-K filing with the Securities and Exchange Commission.

The facility includes two one-year extensions that can be exercised in the first and second years with the approval of lenders. The extensions bind only the lenders who vote to approve them, but Allstate may add additional lenders if the revolver is not fully subscribed for the extension terms.

Borrowings bear interest at Libor plus a margin ranging from 90 basis points to 127.5 bps, depending on Allstate’s credit ratings. There is a facility fee ranging from 10 bps to 22.5 bps, also based on ratings.

JPMorgan Chase Bank, NA and Wells Fargo Securities are the bookrunners and lead arrangers on the deal.

Wells Fargo Bank, NA is syndication agent.

Bank of America, NA, Barclays Bank plc, Credit Suisse AG, New York Branch, Goldman Sachs Bank USA, Morgan Stanley MUFG Loan Partners, LLC and U.S. Bank NA are documentation agents.

JPMorgan is administrative agent.

Proceeds may be used for general corporate purposes.

The new revolver replaces a $1 billion five-year unsecured revolver with JP Morgan as administrative agent.

Allstate Insurance Company is an indirect, wholly owned subsidiary of Allstate Corp., a Northbrook, Ill.-based insurance provider, and Allstate Life Insurance Company is a wholly owned subsidiary of Allstate Insurance Company.

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