Enstar restates revolver to add SunTrust as lender, reduce pricing

By Marisa Wong

Morgantown, W.Va., Aug. 11 – Enstar Group Ltd. amended and restated its existing $665 million unsecured revolving credit facility on Aug. 5 to add a new lender, obtain additional commitments and reduce pricing, according to an 8-K filing with the Securities and Exchange Commission.

National Australia Bank Ltd., Barclays Bank plc, Lloyds Bank plc and SunTrust Robinson Humphrey, Inc. are the lead arrangers with NAB as agent.

SunTrust Bank was added as a new lender, replacing Royal Bank of Canada.

Each of the lenders under the restated facility has agreed to provide an equal amount of $166.25 million to fund the credit facility, and the company now has the option to obtain additional commitments up to an aggregate of $166.25 from the existing lenders or through the addition of one or more new lenders.

The amendment reduces the applicable margin for Libor loans to 215 basis points. The margin is subject to adjustment based on the company’s long-term senior unsecured debt ratings and can range from 190 bps to 265 bps.

Under the restated facility, the company will pay a utilization fee based on the aggregate amount of loans outstanding. The fee ranges from zero to 40 bps.

In addition, the restated agreement permits the company to enter into guarantees during the ordinary course of its insurance business without prior approval from the lenders.

The company originally entered into the five-year credit facility on Sept. 16, 2014.

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

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