Argo Group International amends credit facility for covenant change

Chicago, Feb. 26 – Argo Group International Holdings, Ltd. entered into a sixth amendment on Feb. 21 to its credit agreement from Nov. 2, 2018 with JPMorgan Chase Bank, NA as a lender and as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, among other things, replaces the minimum tangible net worth covenant in the credit agreement with a minimum consolidated net worth covenant that no longer excludes the value of intangible assets.

The consolidated net worth covenant is tested at the end of each fiscal quarter starting with the fiscal quarter ended Dec. 31, 2023 and will be tested against the amount $872 million plus 50% of positive net income for each fiscal quarter ending after Dec. 31, 2023 plus half of the next proceeds received from the sale of certain equity interests after Dec. 31, 2023.

New York-based Argo Group is an international underwriter of specialty insurance and reinsurance products in the property and casualty market.

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