MetLife amends, to restate $4 billion five-year credit agreement

By Tali Rackner

Norfolk, Va., Dec. 21 – MetLife, Inc. and MetLife Funding, Inc. entered into a second amendment to the $4 billion five-year credit agreement with administrative agent Bank of America, NA, according to an 8-K filing with the Securities and Exchange Commission.

The Tuesday amendment provides that the credit agreement will be amended and restated upon the completion of the separation of MetLife’s Brighthouse Financial segment through a spin-off transaction.

The restated agreement will provide for up to $3 billion of borrowings or letters of credit.

There is an up to $1 billion accordion option.

All borrowings must be repaid by Dec. 20, 2021, except that letters of credit outstanding on that date may remain outstanding until no later than Dec. 20, 2022.

Interest is equal to Libor plus 100 basis points to 162.5 bps, depending on MetLife’s senior debt ratings.

The letter-of-credit fee ranges from 87.5 bps to 150 bps, and the commitment fee is 10 bps to 22.5 bps, both also based on ratings.

Proceeds will be used for general corporate purposes.

JPMorgan Chase Bank, NA and Wells Fargo Bank, NA acted as co-syndication agents on the credit agreement. Bank of America Merrill Lynch, JPMorgan and Wells Fargo Securities, LLC acted as joint lead arrangers and bookrunners.

MetLife is an insurance and employee benefits company based in New York City.

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