Enstar signs for $800 million five-year replacement revolver

Chicago, June 2 – Enstar Group Ltd. signed for an $800 million five-year amended and restated revolving credit agreement on May 30, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures on May 30, 2028.

There is a $200 million accordion, subject to a company request and lender discretion.

Interest will be based on the company’s unsecured debt ratings from S&P Global Ratings and Fitch Ratings. The pricing grid was not included in the filing.

Fronted letters of credit may not exceed $75 million.

In terms of covenants, the company must maintain a gearing ratio of consolidated debt to total capitalization of not greater than 0.35x and maintain a consolidated net worth of not less than $4.3 billion plus half of net income available for distribution to ordinary shareholders of the company at any time after June 30, 2022 plus half of the proceeds of any issuance of ordinary shares after June 30, 2022.

The agreement replaces the Aug. 16, 2018 credit agreement, which was for a $600 million revolver that expired in 2023.

National Australia Bank Ltd. is the administrative agent and swingline lender.

Wells Fargo Bank, NA is the fronting bank.

NAB and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners and syndication agents.

NAB is the documentation agent.

Enstar is a Bermuda-based insurance provider.

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