Summary
Ameriprise Financial, Inc. (AMP) filed an 8-K on October 1, 2013, to report the entry into an amended and restated credit agreement, effective September 30, 2013. This agreement supersedes a previous credit facility and provides the company with access to an unsecured revolving credit facility of up to $500 million, with the potential to increase to $750 million. The funds are available for general corporate purposes, including working capital. This updated credit agreement, which matures in September 2018, includes provisions for interest rates based on market rates plus a margin tied to AMP's senior unsecured long-term debt rating, and a facility fee on committed amounts. It also contains customary covenants and events of default, including specific financial covenants such as maintaining a consolidated net worth of at least $5.45 billion and a consolidated leverage ratio not exceeding 40 percent. The agreement reflects Ameriprise's ongoing efforts to maintain robust liquidity and financial flexibility.
Key Highlights
- 1Ameriprise Financial entered into an amended and restated unsecured revolving credit facility on September 30, 2013.
- 2The facility has an initial commitment amount of $500 million, with an option to increase it to $750 million under certain conditions.
- 3The credit facility is available for working capital and general corporate purposes.
- 4The agreement includes provisions for interest rates based on market rates plus a fluctuating margin tied to Ameriprise's debt rating.
- 5Key financial covenants require maintaining a consolidated net worth of at least $5.45 billion and a consolidated leverage ratio not exceeding 40%.
- 6The credit facility has a maturity date of September 28, 2018.
- 7This filing superseded a previous credit agreement dated November 22, 2011.