Enstar closes $500 million five-year revolver at Libor plus 275 bps

By Susanna Moon

Chicago, Sept. 16 – Enstar Group Ltd. obtained a $500 million unsecured five-year revolving credit facility Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Interest initially will be Libor plus 275 basis points, with a spread ranging from 250 bps to 325 bps based on the company’s ratings assigned by Standard & Poor’s or Fitch Ratings.

The unused fee will be 35% of the margin factor.

Proceeds will be used to fund acquisitions and for general corporate purposes.

National Australia Bank Ltd., Barclays Bank plc and Royal Bank of Canada are the mandated lead arrangers and lenders, and NAB is the agent.

In the case of payment default, interest would be increased by 100 bps.

The agreement replaces the company’s $375 million five-year revolver dated June 14, 2011 with NAB as agent.

There was $319.6 million outstanding under the previous facility, and the amount was refinanced Tuesday with the new facility due in September 2019.

Enstar is a Hamilton, Bermuda-based acquirer and manager of diversified insurance businesses.

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