Lincoln National trims facility to $2 billion, extends it to 2028

By Marisa Wong

Los Angeles, Dec. 21 – Lincoln National Corp. entered into a second amended and restated credit agreement on Dec. 21 with a syndicate of banks, including Bank of America, NA as administrative agent, to extend the maturity date, decrease the amount available and update financial covenants, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s existing amended and restated credit agreement dated June 21, 2021.

The now $2 billion facility has a commitment termination date of Dec. 21, 2028.

Under the amended credit agreement, the company will continue to pay the current fee of 97.5 basis points on issued syndicated letters of credit and a facility fee of 15 bps. These fees adjust automatically in the event of a change in credit ratings.

The restated credit agreement also continues to include financial covenants, as in maintenance of a minimum consolidated net worth equal to the sum of $8,626,000,000 plus 50% of the aggregate net cash proceeds of equity issuances received by the company after Sept. 30; a debt-to-capital ratio not to exceed 0.35 to 1.00; and a cap on secured non-operating debt and non-operating debt of subsidiaries equal to 7.5% of total capitalization.

BofA Securities, Inc., JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

JPMorgan and Wells Fargo Bank, NA are syndication agents.

Lincoln National is a Radnor, Pa., holding company for insurance and retirement subsidiaries.

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