Greenlight Capital Re subsidiary enters $200 million LoC facility

By Marisa Wong

Los Angeles, Dec. 28 – Greenlight Reinsurance, Ltd., a direct subsidiary of Greenlight Capital Re, Ltd., entered into a credit agreement on Dec. 22 with CIBC Bank USA acting as a lender and a letters of credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a committed LoC facility in an aggregate amount of $200 million, with a $30 million sublimit for unsecured letters of credit.

The facility matures on Dec. 21, 2024, subject to an automatic extension for a period of an additional one year without prior written notice from Greenlight.

Letters of credit will incur (i) at the time of issuance, an issuance fee equal to 0.25% of the face amount of such letters of credit and (ii) on the earlier of the one-year anniversary of issuance and the expiration or termination of such letters of credit, a fee equal to 0.25% of the average daily undrawn amount of such letters of credit.

In connection with the LoC facility, and solely for the purpose of supporting unsecured letters of credit issued under the facility and reimbursing the LoC issuer for any draws on such unsecured letters of credit, the credit agreement provides for a revolving credit facility in an aggregate amount of $30 million.

The term of the revolver is also one year. Revolving loans will accrue interest at a base rate plus 250 basis points.

Greenlight Capital is a property and casualty reinsurer based in Grand Cayman, Cayman Islands.

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