Symetra enters into $400 million senior unsecured revolver via JPMorgan

By Tali Rackner

Norfolk, Va., Aug. 28 – Symetra Financial Corp. entered into a $400 million senior unsecured revolving credit agreement on Thursday via JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

There is an up to $100 million accordion feature on the agreement, which matures on Aug. 28, 2019. It also provides for the extension of swingline loans to the company.

Borrowings will bear interest at Libor plus an applicable margin depending on leverage.

Symetra is required to maintain certain financial ratios. In particular, each of the company’s material insurance subsidiaries must maintain a risk-based capital ratio of at least 2.25 to 1.00, measured at the end of each year, and the company’s debt-to-capitalization ratio, excluding AOCI, may not exceed 35%, measured at the end of each quarter.

In addition, Symetra agreed to other covenants restricting the ability of its subsidiaries to incur additional debt, its ability to create liens, and its ability to change its fiscal year and to enter into new lines of business, as well as other customary affirmative covenants.

Wells Fargo Bank, NA and U.S. Bank NA are co-syndication agents, BMO Harris Bank, NA and SunTrust Bank are co-documentation agents and J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and U.S. Bank are lead arrangers and bookrunners.

Proceeds will provide support for working capital, capital expenditures and other general corporate purposes, including permitted acquisitions, issuance of letters of credit, refinancing outstanding indebtedness and payment of fees in connection with the agreement.

Symetra is a diversified financial services company based in Bellevue, Wash.

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