Endurance Specialty gets $450 million letter-of-credit facility

By Angela McDaniels

Tacoma, Wash., March 28 – Endurance Specialty Holdings Ltd. entered into a $450 million secured five-year letter-of-credit facility and terminated its existing $700 million credit agreement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

About $307.7 million of letters of credit that were issued under the terminated credit agreement were continued and deemed issued under the new credit facility.

The new credit facility does not provide for revolving or term loans.

There is a $100 million accordion feature.

The company must pay a fee of 40 basis points per year on the daily stated amount of outstanding letters of credit and a commitment fee in the amount of 12.5 bps per year on the average daily amount of the unused commitments of the lenders.

The credit facility includes a financial covenant that the company maintain a leverage ratio of no greater than 0.35 times at any time, and each of the company’s regulated insurance subsidiaries that has a claims paying rating from A.M. Best must maintain a rating of at least B++ at all times.

JPMorgan Chase Bank, NA is the administrative agent.

Pembroke, Bermuda-based Endurance provides property and casualty insurance and reinsurance.

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