Summary
The Hartford Financial Services Group, Inc. (HIG) announced on September 7, 2005, the execution of a new $1.6 billion Five-Year Competitive Advance and Revolving Credit Facility Agreement. This new facility replaces two previous credit agreements, one for $1.0 billion and another for $490 million, consolidating and increasing the company's available credit. This move demonstrates the company's proactive approach to managing its liquidity and financial flexibility. The new credit facility provides unsecured borrowing capacity and includes specific sub-limits for Hartford Life, Inc. and for the issuance of letters of credit. The terms of the facility, including interest rates and fees, are linked to The Hartford's senior unsecured debt ratings, indicating a structure that aligns with its creditworthiness. The availability of this facility for general corporate purposes, including working capital and commercial paper repayment, provides management with significant financial resources to support ongoing operations and strategic initiatives.
Key Highlights
- 1The Hartford executed a new $1.6 billion Five-Year Competitive Advance and Revolving Credit Facility.
- 2This new facility replaces prior credit agreements totaling $1.49 billion, increasing overall borrowing capacity.
- 3The credit facility is unsecured, offering flexibility to the company.
- 4Specific sub-limits exist for Hartford Life ($250 million) and for letters of credit ($100 million).
- 5Borrowings can be used for general corporate purposes, including working capital and repayment of commercial paper.
- 6Interest rates and fees are variable and tied to The Hartford's credit ratings.
- 7The facility matures on September 7, 2010, providing medium-term financial support.