Search the web
Welcome, Guest
[Sign Out, My Account]

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
ACE > SEC Filings for ACE > Form 8-K on 13-Nov-2012All Recent SEC Filings

Show all filings for ACE LTD

Form 8-K for ACE LTD


Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or

Item 1.01 Entry into a Material Definitive Agreement.

On November 6, 2012, ACE Limited ("ACE"), ACE Bermuda Insurance Ltd. ("ACE Bermuda"), ACE Tempest Life Reinsurance Ltd. ("ACE Tempest Life"), ACE Tempest Reinsurance Ltd. ("ACE Tempest Re") and ACE INA Holdings Inc. ("ACE INA" and, together with ACE, ACE Bermuda, ACE Tempest Life and ACE Tempest Re, the "Borrowers") entered into a syndicated credit agreement (the "Credit Agreement") with a group of lenders and Wells Fargo Bank, National Association, as administrative agent.

The Credit Agreement is unsecured and provides for up to $1,000,000,000 of availability, all of which may be used for the issuance of letters of credit and up to $300,000,000 of which may be used for revolving loans. Subject to obtaining additional commitments, ACE may increase the availability under the Credit Agreement by up to $500,000,000.

The Credit Agreement may be used for working capital and other general corporate purposes. The Credit Agreement replaces (i) the $1,000,000,000 syndicated second amended and restated reimbursement agreement dated as of November 8, 2007 among ACE, ACE Bermuda, ACE Tempest Life, ACE Tempest Re, various lenders and Wells Fargo Bank, National Association (successor to Wachovia Bank, National Association), as administrative agent, and (ii) the $500,000,000 syndicated second amended and restated credit agreement dated as of November 8, 2007 among ACE, ACE Bermuda, ACE Tempest Re, ACE INA, various lenders and JPMorgan Chase Bank, N.A., as administrative agent, each of which was terminated on November 6, 2012.

Under the Credit Agreement, ACE or the applicable Borrower pays (a) a commitment fee based upon ACE's long-term foreign issuer credit rating (or its equivalent) by S&P or Moody's (the "ACE Ratings") on any unutilized portion of the facility,
(b) an interest rate margin based on the ACE Ratings on the outstanding amount of loans, (c) a letter of credit commission based on the ACE Ratings on the amount of the outstanding letters of credit, (d) fronting fees to each lender that issues letters of credit on behalf of other lenders under the Credit Agreement, (e) customary administrative charges of the applicable letter of credit issuers and (f) customary administrative fees of the administrative agent. ACE also paid customary upfront and arrangement fees in connection with the closing of the Credit Agreement.

The terms and conditions of the Credit Agreement are substantially similar to the provisions in other ACE group credit facilities. The Credit Agreement contains customary covenants, including covenants limiting liens, substantial asset sales and mergers. Most of these restrictions are subject to certain minimum thresholds and exceptions. ACE guarantees all obligations of the other Borrowers under the Credit Agreement.

The Credit Agreement also contains financial covenants that require maintenance of:

(i) a minimum consolidated net worth of not less than $17,486,776,000 (subject to an annual reset provision) plus 25 percent of cumulative net income from June 30, 2012, plus 50 percent of the net proceeds of any issuance of equity interests subsequent to June 30, 2012; and

(ii) a ratio of consolidated total debt (excluding trust preferred securities and mezzanine capital to the extent not exceeding 15 percent of total capitalization) to total capitalization of not greater than 0.35 to 1.

In addition, the Credit Agreement has customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control and cross-default to other debt agreements.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

See Item 1.01 above which is incorporated herein by reference.

  Add ACE to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for ACE - All Recent SEC Filings
Copyright © 2015 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.