James River waives default from downgrade of insurance subsidiary

By Wendy Van Sickle

Columbus, Ohio, Feb. 28 – James River Group Holdings, Ltd. and JRG Reinsurance Co., Ltd. entered into a waiver agreement with their lenders to their third amended and restated their credit agreement with KeyBank NA as administrative agent on Feb. 26, according to an 8-K filing with the Securities and Exchange Commission.

The waiver to this credit agreement was agreed with KeyBank NA as administrative agent and letter-of-credit issuer, KeyBank and Truist Securities, Inc. as joint bookrunners and joint lead arrangers and Truist Bank as syndication agent. James River also entered a limited waiver agreement to the Aug. 2, 2017 credit agreement with BMO Bank, NA as lender.

Under the waivers, the event of default caused by the downgrade by A.M. Best of the financial strength rating of JRG Reinsurance to “B++” from “A-” on Dec. 20 was waived.

The financial strength rating covenant in each of the credit facilities requires that each of the company’s regulated insurance subsidiaries maintain an A.M. Best financial strength rating not lower than “A-.” Upon the closing of the sale of JRG Reinsurance under a Nov. 8 agreement, JRG Re will no longer be an insurance subsidiary under the credit facilities, and the subject default will no longer be continuing.

Based in Pembroke, Bermuda, James River Group owns and operates a group of specialty insurance and reinsurance companies.

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