8-KMaterial AgreementsFinancial EventsExhibits & Filings

METLIFE INC 8-K Report, Material Agreement (Sep 19, 2012)

Filed September 19, 2012For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife, Inc. (MET) filed an 8-K on September 18, 2012, reporting on significant updates to its credit facilities. The company entered into a new $1,000,000,000 Five-Year Credit Agreement, which amended and restated its previous Three-Year Credit Agreement. This new facility is set to mature in September 2017 for borrowings and September 2018 for outstanding letters of credit. Furthermore, MetLife amended its existing $3,000,000,000 Five-Year Credit Agreement from August 2011 to align certain provisions with the new 2012 agreement. The combined credit facilities can be increased up to $5,000,000,000, subject to certain conditions. These credit facilities are intended for general corporate purposes, including backing commercial paper and supporting variable annuity policy and reinsurance reserve requirements.

Key Highlights

  • 1MetLife entered into a new $1 billion Five-Year Credit Agreement dated September 13, 2012.
  • 2This new agreement amends and restates a previous Three-Year Credit Agreement.
  • 3MetLife also amended its existing $3 billion Five-Year Credit Agreement dated August 12, 2011.
  • 4The purpose of these credit facilities is for general corporate purposes, including backing commercial paper and supporting insurance-related obligations.
  • 5The total available credit under the current agreements can be increased to a maximum of $5 billion.
  • 6Borrowings under the new 2012 agreement are due by September 13, 2017, with letters of credit extendable to September 13, 2018.
  • 7The company is subject to a consolidated net worth requirement of $29.0 billion under these agreements.

Frequently Asked Questions

The total amount available under the current credit agreements can be increased to a maximum of $5,000,000,000, subject to the absence of any continuing event of default.

The funds are designated for general corporate purposes. This includes backing commercial paper issuances and supporting variable annuity policy and reinsurance reserve requirements.

For the new $1 billion Five-Year Credit Agreement (2012), borrowings must be repaid by September 13, 2017, and letters of credit can remain outstanding until September 13, 2018. For the amended $3 billion Five-Year Credit Agreement (2011), borrowings are due by August 12, 2016, with letters of credit extendable to August 12, 2017.

Yes, MetLife is required to maintain a consolidated net worth of at least $29.0 billion, excluding accumulated other comprehensive income, under each of the current credit agreements.