Markel obtains new five-year $300 million revolving facility

By Wendy Van Sickle

Columbus, Ohio, April 12 – Markel Corp. entered into a new credit agreement providing for a five-year $300 million revolving credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

There is a $200 million sublimit for letters of credit.

Wells Fargo Securities, LLC and Citigroup Global Markets Inc. are the joint lead arrangers and bookrunners. Wells Fargo Bank, NA is the administrative agent, and Citibank, NA is the syndication agent.

Borrowings bear interest at Libor plus 125 basis points to 162.5 bps, and the commitment fee ranges from 17.5 bps to 25 bps, in each case depending on the leverage ratio.

The credit facility is set to expire on April 10, 2024.

Financial covenants include a maximum leverage ratio and a minimum consolidated net worth.

Proceeds may be used for acquisitions, investments and stock repurchases and for other working capital and general corporate purposes

Markel is a Glen Allen, Va.-based financial holding company, primarily for specialty insurance products.

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