8-KMaterial AgreementsFinancial EventsOther Events+1

Chubb Ltd 8-K Report, Material Agreement (Apr 1, 2008)

Filed April 1, 2008For Securities:CB

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).

Frequently Asked Questions

The main purpose of this filing is to report the completion of ACE Limited's acquisition of Combined Insurance Company of America and the related financing through a $450 million syndicated term loan.

ACE Limited paid approximately $2.56 billion for all outstanding shares of Combined Insurance Company of America and its subsidiaries.

ACE INA Holdings Inc. entered into a $450 million unsecured syndicated term loan agreement. It matures in April 2013, and interest is based on LIBOR or a floating rate plus a margin.

ACE must maintain a consolidated total debt-to-total capitalization ratio no greater than 0.35 to 1 and a minimum consolidated net worth of at least $9.570 billion (with adjustments for subsequent net income and equity issuances).