StanCorp Financial gets $250 million four-year unsecured revolver

By Susanna Moon

Chicago, June 22 - StanCorp Financial Group, Inc. closed a $250 million four-year senior unsecured revolving credit facility at Libor plus 100 basis points to 145 bps, based on the company's debt ratings.

The company may boost the facility size by up to $100 million, to a total of up to $350 million.

The facility matures on June 22, 2016, with two additional one-year extension options with lender consent.

Proceeds will be used for working capital and general corporate purposes.

StanCorp entered into an agreement on Friday with Wells Fargo Securities, LLC and U.S. Bank NA as lead arrangers and bookrunners, and with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility fee ranges from 12.5 bps to 30 bps, based on the company's ratings.

The financial covenants limit the company's leverage ratio of total debt to total capitalization to 35% as of the last day of any fiscal quarter and require its consolidated net worth to be at least the sum of $1,202,530,000 as of the last day of any fiscal quarter, plus 50% of StanCorp's consolidated net income - if it's positive - for each fiscal quarter ending after closing, plus 50% of each equity issuance by StanCorp after closing, except for those under an employee benefit plan.

The facility replaces the company's $165 million credit agreement with Wells Fargo set to expire on June 15, 2013.

StanCorp is a Portland, Ore.-based holding company for its insurance and asset management subsidiaries.

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