HCC Insurance gets $90 million restated LoC facility due 2017

By Marisa Wong

Madison, Wis., Dec. 2 - HCC Insurance Holdings, Inc. amended and restated on Nov. 25 its $90 million standby letter-of-credit facility agreement dated Nov. 26, 2010 with Royal Bank of Scotland plc and Barclays Bank plc for a new $90 million letter-of-credit facility due Dec. 31, 2017, according to an 8-K filing with the Securities and Exchange Commission.

A letter of credit under the restated facility equal to $90 million was issued to beneficiary Lloyd's of London on Nov. 26.

The sole purpose of the facility is tied to HCC's account at Lloyd's for 2014 and prior years, according to the filing.

HCC paid an arrangement fee equal to 0.25% of each bank's commitment under the restated facility and will pay a commitment commission of 0.15% on the unused portion of any lender's commitment. HCC will also pay a letter-of-credit fee in the amount of 1.05% on letters of credit issued under the restated facility.

The specialty insurance group is based in Houston.

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