8-KMaterial AgreementsExhibits & Filings

ALLSTATE CORP 8-K Report, Material Agreement (May 27, 2008)

Filed May 27, 2008For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

This 8-K filing reports on an amendment to Allstate Corporation's (ALL) credit agreement. Specifically, Amendment No. 1 to the Credit Agreement, dated May 22, 2008, was entered into by Allstate Insurance Company and Allstate Life Insurance Company as borrowers. This amendment modifies the terms related to the extension options for the credit facility. The key investor takeaway is the enhanced flexibility in managing the company's debt structure. The original agreement had a five-year term expiring in May 2012 with two one-year extension options exercisable at specific times. The amendment allows Allstate to exercise these two one-year extensions at the end of any of the remaining four years of the initial term, providing greater strategic discretion in capital management and debt maturity planning.

Key Highlights

  • 1Allstate Corporation, through its subsidiaries Allstate Insurance Company and Allstate Life Insurance Company, entered into Amendment No. 1 to its Credit Agreement on May 22, 2008.
  • 2The amendment primarily affects the terms and flexibility of exercising extension options for the credit facility.
  • 3The original credit agreement had a five-year term, set to expire on May 8, 2012.
  • 4The amendment grants Allstate the ability to exercise its two one-year extension options at the end of any of the remaining four years of the initial term.
  • 5This change provides Allstate with increased flexibility in managing its debt maturities and capital structure.
  • 6The filing was made on May 26, 2008, with an earliest event date of May 22, 2008.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report on the entry into Amendment No. 1 to Allstate Corporation's Credit Agreement. This amendment modifies the terms related to the extension options of the company's credit facility.

The borrowers under the credit agreement are Allstate Insurance Company and Allstate Life Insurance Company. The filing also names various agents including Wachovia Bank, National Association (Syndication Agent), Bank of America, N.A. and Citibank, N.A. (Documentation Agents), Lehman Brothers Bank, FSB, Merrill Lynch Bank USA, Morgan Stanley Bank, and William Street Commitment Corporation (Co-Agents), and JPMorgan Chase Bank, N.A. (Administrative Agent).

The amendment enhances flexibility regarding the extension of the credit facility. Originally, there were two one-year extensions exercisable at specific times. The amendment allows these two one-year extensions to be exercised by Allstate at the end of any of the remaining four years of the initial five-year term, providing greater strategic control over debt management.

The initial term of the credit agreement was set to expire on May 8, 2012. The amendment provides Allstate with the option to extend the facility by one year, twice, at the end of any of the remaining four years of the initial term, giving it more discretion than the original terms likely allowed.