Kemper gets new $50 million term loan, ups revolver to $400 million

By Sarah Lizee

Olympia, Wash., June 4 – Kemper Corp. completed a new up to $50 million term loan credit agreement and a $100 million increase of revolving credit borrowing capacity under the terms of its existing credit agreement, according to a press release.

The increased credit commitment used the accordion feature under Kemper’s existing credit agreement and resulted in an increase of the available revolving commitments to $400 million from $300 million.

As of Tuesday, there were no outstanding borrowings under the existing revolver, which is scheduled to mature in June 2023.

A portion of the new term loan, along with other funds, will be used to redeem all $150 million of the company’s 7.375% subordinated debentures due 2054.

The new term loan agreement and expanded credit capacity under the revolver will provide Kemper with future financial flexibility, the company said.

For the new term loan, PNC Capital Markets LLC and BMO Capital Markets Corp. acted as joint lead arrangers, with PNC also acting as bookrunner. PNC Bank, NA acted as administrative agent.

For the revolver increase, JPMorgan Chase Bank, NA, Merrill Lynch, Pierce, Fenner & Smith, Inc. and Wells Fargo Securities, LLC acted as joint bookrunners and joint lead arrangers. JPMorgan was the administrative agent and syndication agent.

On May 31, Kemper also repaid the remaining $35 million of principal outstanding under its existing term loan due June 29, 2020 with cash on hand.

Kemper is an insurance company based in Chicago.

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