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.