Stewart Information signs $600 million senior credit agreement

Chicago, Oct. 28 – Stewart Information Services Corp. entered into a new $600 million credit facility on Thursday with PNC Bank, NA listed as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility is a $200 million revolver that matures on Oct. 28, 2026 and a $400 million delayed-draw 364-day term loan.

Borrowings on the revolver can be increased up to an additional $125 million.

The company immediately drew $370 million under the term loan, proceeds of which were used to repay in full the $270 million outstanding on the company’s senior credit agreement from Nov. 9 2018 with BBVA.

Other proceeds may be used for general corporate purposes, including to finance strategic acquisitions.

Based on the debt to capitalization ratio, the revolver bears interest at Libor plus 125 basis points to 162.5 bps. For term loans, the interest is between Libor plus 87.5 bps to 125 bps.

The commitment fee on the revolver falls between 15 bps to 30 bps per year, based on the unused portion of the commitments.

The credit agreement replaces the existing credit agreement which was terminated on Thursday.

The credit facility is guaranteed by Stewart Title Co. and Stewart Lender Services.

PNC is also the swingline loan lender and issuing lender.

PNC Capital Markets LLC is the lead arranger and bookrunner.

Fifth Third Bank, Regions Bank and Citizens Bank are co-syndication agents.

Iberiabank, a division of First Horizon, and Amegy Bank are co-documentation agents.

Stewart Information Services is a Houston-based title insurance company.

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