Summary
This Form 8-K filing by The Progressive Corporation (PGR) reports on an amendment to its 364-Day Secured Liquidity Credit Facility Agreement. Effective December 31, 2009, Amendment No. 1 extended the facility's term to December 31, 2010, and updated the lender to PNC Bank, National Association, as the successor to National City Bank. The credit facility has a principal amount of $125 million, with the potential to increase to $150 million, and is secured by company assets. The purpose of this credit line remains to provide liquidity during disruptions in cash management, treasury operations, or financial markets. Notably, no borrowings have been made under this facility since its inception on December 31, 2008. The amendment also specifies terms for Eurodollar Loans, including a spread of 50 basis points over LIBOR, and details a one-time facility fee of $12,500.
Key Highlights
- 1The Progressive Corporation amended its 364-Day Secured Liquidity Credit Facility Agreement.
- 2The amendment extends the credit facility's term from December 31, 2009, to December 31, 2010.
- 3PNC Bank, National Association, is now the lender, succeeding National City Bank.
- 4The credit facility has an initial principal amount of $125 million, extendable up to $150 million.
- 5The facility is secured by certain company assets.
- 6The purpose of the credit line is to provide liquidity during potential disruptions.
- 7No borrowings have been drawn under this facility since its origination.