Summary
On March 25, 2013, The Progressive Corporation (PGR) announced the entry into a new unsecured, discretionary line of credit with PNC Bank, National Association. This new facility provides the company with up to $100 million in borrowing capacity. The previous credit arrangement with PNC had expired on December 31, 2012. This new line of credit offers financial flexibility, particularly given its discretionary nature, allowing the company to access funds if needed. The terms indicate a variable interest rate tied to the Prime Rate or the Federal Funds Open Rate plus 50 basis points. Repayment is due within 30 days of each advance or by the facility's expiration on March 25, 2014. Prepayments are allowed without penalty, and importantly, all advances are subject to PNC's discretion.
Key Highlights
- 1Progressive Corporation entered into a new $100 million unsecured, discretionary line of credit with PNC Bank.
- 2The previous credit agreement with PNC expired on December 31, 2012.
- 3The new line of credit has an expiration date of March 25, 2014.
- 4Interest on advances will be at a variable rate, tied to PNC's Prime Rate or Federal Funds Open Rate plus 50 basis points.
- 5Each advance must be repaid within 30 days or by the facility's expiration.
- 6Prepayments can be made without penalty.
- 7All advances under the line of credit are subject to PNC's discretion.