Enstar subsidiary Royston Run-Off gets commitment for $184.6 million loan

By Angela McDaniels

Tacoma, Wash., Oct. 9 - Royston Run-Off Ltd. entered into a term facilities agreement with National Australia Bank Ltd. on Oct. 3 for a $184.6 million loan to be made when its acquisition of Unionamerica Holdings Ltd. closes, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a guarantee from parent company Enstar Group Ltd.

The loan will be divided into a $152.6 million three-year facility A and a $32 million four-year facility B.

Interest will be Libor plus 350 basis points for facility A and Libor plus 400 bps for facility B.

Proceeds will help fund the $343.4 million purchase of Unionamerica Holdings from St. Paul Fire and Marine Insurance Co., an affiliate of Travelers Cos., Inc. The acquisition is expected to close in the fourth quarter.

Enstar is a Hamilton, Bermuda company that acquires and manages insurance and reinsurance companies in run-off.

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