Kemper reduces commitments under revolving facility to $225 million

By Marisa Wong

Madison, Wis., Jan. 7 - Kemper Corp. amended its credit agreement dated March 7, 2012 to reduce commitments under its revolving credit facility by $100 million, to $225 million from $325 million, according to an 8-K filing with the Securities and Exchange Commission.

Kemper also revised a covenant to increase the total amount of debt that may be incurred and outstanding at any time in connection with borrowings from the Federal Home Loan Bank or issuances of surplus notes. The total amount of debt has been increased by $150 million, to $250 million, provided that the total debt incurred and outstanding in connection with issuances of surplus notes does not exceed $100 million at any one time.

In addition, the definition of Libor was amended to be consistent with the lenders' current standard definition, the filing said.

The amendment was executed on Dec. 31 by Kemper and lenders representing more than 66 2/3% of the outstanding commitments under the credit agreement.

The amendment is related to Kemper's subsidiaries, United Insurance Co. of America and Trinity Universal Insurance Co., becoming members of the FHLBs of Chicago and Dallas, respectively. The FHLB memberships will provide United and Trinity with access to additional sources of liquidity. As a result, the parent company reduced commitments under its credit facility.

Kemper is a diversified insurance holding company based in Chicago.

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