Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on January 6, 2012, to report the entry into a new $1.75 billion Four-Year Revolving Credit Facility Agreement. This new facility replaces a previous $1.90 billion agreement that was set to expire in August 2012. Importantly, there were no outstanding borrowings under the old facility at the time of its termination, indicating the company's proactive management of its debt obligations. The new credit facility, which matures on January 6, 2016, can be used for working capital and general corporate purposes. It includes covenants requiring the maintenance of a minimum net worth and adherence to certain debt-to-capitalization ratios. The report also notes that lenders and agents may have provided or may continue to provide various financial services to The Hartford, for which they receive customary compensation. This filing primarily informs investors about the company's continued access to credit and its financial flexibility.
Key Highlights
- 1The Hartford entered into a new $1.75 billion Four-Year Revolving Credit Facility Agreement, effective January 6, 2012.
- 2This new facility replaces a prior $1.90 billion credit agreement.
- 3There were no outstanding borrowings under the previous credit agreement when it was terminated.
- 4The new credit facility has an expiration date of January 6, 2016.
- 5Borrowings under the new facility are permitted for working capital and general corporate purposes.
- 6The agreement includes financial covenants related to minimum net worth and debt-to-capitalization ratios.
- 7The facility allows for revolving loans and letters of credit, with a $250 million sublimit for letters of credit.