Summary
This 8-K filing by ACE Limited (now Chubb Ltd) on April 1, 2008, announces the successful closing of its acquisition of Combined Insurance Company of America for approximately $2.56 billion. To finance a portion of this significant acquisition, ACE Limited, through its subsidiary ACE INA Holdings Inc., secured a $450 million syndicated term loan agreement. This loan is unsecured, has a five-year maturity (April 2013), and carries interest rates based on LIBOR or a floating rate tied to Bank of America's prime rate or the Federal Funds rate, plus applicable margins and fees.
Key Highlights
- 1ACE Limited has completed the acquisition of Combined Insurance Company of America for approximately $2.56 billion.
- 2A $450 million unsecured syndicated term loan agreement has been entered into to fund part of the acquisition.
- 3The term loan matures in April 2013 and is unsecured.
- 4Proceeds from the term loan will be used to pay a portion of the Combined Insurance Company of America purchase price and related costs.
- 5The loan agreement includes customary covenants, such as limitations on liens, asset sales, and mergers.
- 6Key financial covenants require ACE to maintain a debt-to-capitalization ratio below 0.35:1 and a minimum consolidated net worth of $9.570 billion (with adjustments).