Summary
Cincinnati Financial Corporation (CINF) filed an 8-K on July 9, 2008, to report the renewal of its $75 million unsecured line of credit with PNC Bank, N.A. This renewal, effective June 30, 2008, extends for one year, through June 30, 2009. The company's subsidiary, CFC Investment Company, is also a borrower under this credit facility. The terms of the agreement remain unchanged from the previous arrangement.
Key Highlights
- 1Renewal of a $75 million unsecured line of credit with PNC Bank, N.A.
- 2Credit facility renewed for a one-year term, expiring June 30, 2009.
- 3No change in the contract terms of the credit agreement.
- 4CFC Investment Company, a subsidiary, is also a borrower.
- 5As of June 30, 2008, there was $49 million outstanding on the line of credit.
- 6The interest rate on the outstanding balance is LIBOR plus 75 basis points.
- 7The filing also includes an exhibit detailing the offer and acceptance for the credit line renewal.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report the renewal of Cincinnati Financial Corporation's material definitive agreement, specifically its $75 million unsecured line of credit with PNC Bank, N.A.
The line of credit has been renewed for a one-year term, effective from June 30, 2008, to June 30, 2009. The contract terms remain unchanged, and it is an unsecured facility.
As of June 30, 2008, Cincinnati Financial Corporation had $49 million outstanding under this line of credit.
The interest rate for the outstanding balance is tied to LIBOR plus a spread of 75 basis points.