Reinsurance Group gets up to $500 million letter-of-credit agreement

By Wendy Van Sickle

Columbus, Ohio, May 19 – Reinsurance Group of America, Inc. entered into an up to $500 million letter-of-credit reimbursement agreement on Wednesday with Credit Agricole CIB as lender, according to an 8-K filing with the Securities and Exchange Commission.

Letters of credit may be obtained in U.S., Australian, Canadian or Hong Kong dollars, pounds sterling, euros or Japanese yen through May 17, 2021. No letter of credit may remain outstanding after May 17, 2022.

Reinsurance Group will pay a letter-of-credit fee on outstanding letters of credit ranging from 40 basis points to 120 bps, based on the company’s debt rating and the percentage of the commitment utilized.

During the availability period, it will pay a commitment fee of 15 bps to 30 bps, also based on the company’s debt rating and the percentage of the commitment utilized.

There is an early termination fee of $1 million if the agreement is terminated before May 17, 2019.

Reinsurance Group is a Chesterfield, Mo.-based reinsurance company.

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