MetLife gets $1 billion credit facility due 2017 at Libor plus 125 bps

By Angela McDaniels

Tacoma, Wash., Sept. 19 - MetLife, Inc. and subsidiary MetLife Funding, Inc. entered into a $1 billion five-year credit facility on Sept. 13, according to an 8-K filing with the Securities and Exchange Commission.

The facility amends and restates the company's three-year credit facility dated Oct. 15, 2010.

Initial pricing is an interest rate of Libor plus 125 basis points, a letter-of-credit fee of 112.5 bps and a commitment fee of 15 bps.

The spread over Libor ranges from 100 bps to 187.5 bps, the letter-of-credit fee ranges from 87.5 bps to 175 bps, and the commitment fee ranges from 10 bps to 30 bps. Each depends on the company's ratings.

Bank of America, NA is the administrative agent, fronting letter-of-credit issuer and several letter-of-credit agent. JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are the syndication agents. Credit Suisse AG, New York Branch, Deutsche Bank Securities Inc., HSBC Bank USA, NA and UBS AG, Stamford Branch are the documentation agents. Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the lead arrangers and bookrunners.

Any letters of credit outstanding on the maturity date, Sept. 13, 2017, may remain outstanding until no later than Sept. 13, 2018.

The borrowers also amended their $3 billion credit facility due Aug. 12, 2016 to conform some of its provisions to provisions under the new credit facility.

The amount available under the two credit facilities may be increased to a maximum amount of $5 billion.

Proceeds may be used for general corporate purposes including, in the case of loans made under the facilities, to back up commercial paper and, in the case of letters of credit, to support variable annuity policy and reinsurance reserve requirements.

Under both facilities, the company is subject to a consolidated net worth requirement of $29 billion, excluding accumulated other comprehensive income.

MetLife is an insurance company based in New York.

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