Summary
Chubb Ltd. (CB) has filed an 8-K report detailing the amendment and restatement of its credit agreement. The company entered into a new unsecured credit agreement on October 25, 2017, with a total availability of up to $1,000,000,000, which can be increased by an additional $1,000,000,000 subject to additional commitments. This facility is primarily for working capital and general corporate purposes, including the issuance of letters of credit and revolving loans. The amended agreement replaces a prior syndicated credit agreement and maintains substantially similar terms and conditions. Key financial covenants require Chubb to maintain a minimum consolidated net worth of $34,985,000,000 and a debt-to-total capitalization ratio not exceeding 0.35 to 1. The agreement also includes standard covenants and events of default, with an expiration date set for October 25, 2022, though letters of credit may extend beyond this.
Key Highlights
- 1Chubb Ltd. amended and restated its unsecured credit agreement on October 25, 2017.
- 2The new credit agreement provides for up to $1,000,000,000 in availability, with an option to increase by another $1,000,000,000.
- 3Funds from the credit facility are designated for working capital and general corporate purposes, including letters of credit and revolving loans.
- 4The agreement replaces a prior syndicated credit facility and maintains similar terms and conditions.
- 5Key financial covenants include a minimum consolidated net worth of $34,985,000,000 and a maximum debt-to-total capitalization ratio of 0.35:1.
- 6The credit agreement contains customary covenants and events of default, offering financial flexibility within defined parameters.
- 7The facility is scheduled to expire on October 25, 2022, with potential extensions for outstanding letters of credit.