Athene lands $2.3 billion 364-day credit agreement

By William Gullotti

Buffalo, N.Y., July 8 – Athene Holding Ltd. and its wholly owned indirect subsidiary Athene Life Re Ltd. entered a $2.3 billion 364-day credit agreement on July 1 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement, which terminates June 30, 2023 if not extended, may be increased by $700 million on a revolving basis.

Borrowings will be guaranteed by Athene Life Re.

Interest accrues at SOFR plus a margin ranging from 100 basis points to 125 bps, with a fee on unused commitments ranging from 10 bps to 17.5 bps. The margin and fee are both based upon the subsidiary’s financial strength rating.

At closing, the margin was set at 110 bps and the commitment fee at 12.5 bps.

The agreement also includes a financial covenant that requires Athene Life Re to maintain a minimum consolidated net worth of no less than $9,326,100,000.

Wells Fargo Securities, LLC is the lead arranger and book manager.

The facility will be used for liquidity and working capital needs to meet short-term cash flow and investment timing differences between the borrowers and certain of their subsidiaries.

The company’s existing $1.25 billion credit agreement with Citibank, NA as administrative agent, dated Dec. 3, 2019 and terminating Dec. 3, 2024, remains outstanding and available for use by the company.

Athene is a Pembroke, Bermuda-based retirement services company.

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