Summary
The Travelers Companies, Inc. (TRV) filed an 8-K on June 6, 2018, to report the execution of a new $1.0 billion Five-Year Revolving Credit Agreement, effective June 4, 2018. This new agreement replaces a prior credit facility of the same size and maturity, which was terminated concurrently. The new credit facility provides the company with significant liquidity for general corporate purposes and demonstrates continued access to capital markets. The updated credit agreement offers flexibility with an option to increase the facility size up to $1.5 billion, subject to lender consent. The terms of the agreement, including interest rates and facility fees, are tied to the company's credit ratings, aligning financing costs with financial strength. Key covenants include maintaining a minimum consolidated net worth relative to goodwill and intangible assets, along with standard restrictive covenants and events of default.
Key Highlights
- 1Entered into a new $1.0 billion Five-Year Revolving Credit Agreement on June 4, 2018.
- 2The new agreement replaces a previous $1.0 billion credit facility.
- 3The credit facility has a maturity date of June 4, 2023.
- 4Borrowings under the agreement are for general corporate purposes.
- 5The company has an option to increase the credit facility to $1.5 billion, subject to lender approval.
- 6Interest rates and fees are linked to Travelers' credit ratings.
- 7Key covenants include maintaining a minimum consolidated net worth relative to intangible assets.