Mercury General gets access to up to $200 million of term loans

By Angela McDaniels

Tacoma, Wash., July 9 - Mercury General Corp. entered into a credit agreement for up to $200 million of term loans on July 2, according to an 8-K filing with the Securities and Exchange Commission.

The agreement matures June 30, 2018.

The interest rate is Libor plus 112.5 basis points to 162.5 bps. The margin depends on the company's debt-to-capitalization ratio.

Bank of America, NA is the administrative agent.

Subject to minimum repayment requirements, the loans may be voluntarily prepaid in whole or in part at any time without premium or penalty.

The agreement contains covenants that include the maintenance of specified statutory surplus levels, a limitation on the amount of debt the company is allowed to incur and the maintenance of a minimum amount of risk-based capital in any material insurance subsidiary of the company.

Mercury General is a fire, marine and casualty insurance company based in Los Angeles.

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