Montpelier Re enters into $75 million letter of credit with Barclays

By Marisa Wong

Madison, Wis., Nov. 1 - Montpelier Reinsurance Ltd. entered into a letter-of-credit reimbursement and pledge agreement with Barclays Bank plc on Oct. 31 providing for a four-year secured $75 million letter-of-credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The agreement requires parent company Montpelier Re Holdings Ltd. to maintain debt leverage of no greater than 30% and Montpelier Re to maintain an A.M. Best financial strength rating of no less than B++. If either the parent company or operating subsidiary fails to comply with these covenants, the facility can be revoked.

Based in Hamilton, Bermuda, Montpelier Re provides property and casualty reinsurance and insurance products.

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