Assurant enters $450 million revolver, $350 million 364-day term loan

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Assurant, Inc. entered into an amended and restated credit agreement on Dec. 15 providing for a five-year $450 million revolving credit facility and a 364-day $350 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

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

JPMorgan is the administrative agent and Wells Fargo Bank, NA the syndication agent.

BMO Harris Bank NA, Bank of Nova Scotia, KeyBank NA and U.S. Bank NA are the co-documentation agents.

The new revolver replaces the company’s $400 million revolver that was set to expire in September 2019.

It bears interest at Libor plus a margin ranging from 100 basis points to 225 bps, and the commitment fee ranges from 12.5 bps to 37.5 bps, depending on the company’s credit ratings.

Proceeds of the revolver may be used for general corporate purposes, and there is a $100 million accordion feature.

The term loan bears interest at Libor plus 100 bps to 187.5 bps, depending on Assurant’s ratings.

The term loan may be used in Assurant’s planned acquisition of Warranty Group. The transaction is valued at roughly $2.5 billion and is expected to close in the first half of 2018. The term loan may also be used to fund the redemption of Assurant’s 2.5% notes due March 15, 2018.

Based in New York, Assurant provides risk management solutions. Chicago-based Warranty Group is a provider of protection plans and related programs and is a portfolio company of TPG Capital.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.