Global insurance broker Willis Group Holdings announced that it has completed negotiation of a $600 million credit agreement, consisting of a $450 million 5-year term loan facility and a $150 million revolving credit facility.
“These new credit facilities are unsecured and subject to investment grade terms,” said the bulletin. They will replace the company’s existing bank loan facility, which was repaid in November. “Proceeds of the new facilities will be used to retire the company’s outstanding senior subordinated notes and for general corporate purposes,” it continued. “Both the term loan and the revolving credit facility will bear interest at an initial rate of LIBOR plus 95 basis points, subject to adjustment based on future changes in the company’s leverage and credit ratings.”
Willis Chairman and CEO Joe Plumeri commented: “Willis recently announced our fifteenth consecutive quarter of record results and an increase in our debt rating to investment grade. These new credit facilities, for which there was strong market demand, are a further reflection of our outstanding financial and operational progress.”
The new facilities were arranged by Banc of America Securities Limited, Citigroup Global Markets Limited, JP Morgan Securities Inc and The Royal Bank of Scotland plc.
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