CNA Surety Corporation reported that it has repaid or extended a $15 million revolving credit loan that was due on November 30, 2002, which was guaranteed by the company’s parent, CNA Financial Corp.
It repaid $11 million on November 29 and arranged for the due date on the remaining $4 million to be moved to March 31, 2003. It also announced that it has “refinanced $65 million of outstanding borrowings under its expiring credit agreement with a $35 million revolving credit loan and a $30 million three year term loan.” It has an additional commitment from a second lender for a $10 million credit facility, “subject to satisfactory legal review and documentation.”
CNA Surety stated that “Upon approval and after repayment of the $4 million loan at March 31, 2003, this commitment would raise the availability of the credit facility to $60 million from $54 million.”
“As a result of the foregoing, CNA Surety’s largest shareholder, CNA Financial Corporation, which had guaranteed CNA Surety’s obligation to repay $15 million of loans through November 30, 2002, would no longer be a guarantor,” the bulletin concluded.
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