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

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
MCY > SEC Filings for MCY > Form 8-K on 9-Jul-2013All Recent SEC Filings

Show all filings for MERCURY GENERAL CORP



Entry into a Material Definitive Agreement, Creation of a Direct Financial O

Item 1.01. Entry Into a Material Definitive Agreement.

On July 2, 2013, Mercury General Corporation (the "Company") entered into a Credit Agreement (the "Agreement"), with Bank of America, N.A., as administrative agent ("Bank of America"), and the Lenders party thereto.

The Agreement provides for term loans of up to $200 million and bears interest, at the Company's option, at either (a) the rate per annum equal to the British Bankers Association London Interbank Offered Rate ("LIBOR") plus an additional percentage between 1.125% and 1.625% depending upon the Company's debt to capitalization ratio from time to time ("the Applicable Margin"), or (b) a fluctuating rate per annum equal to the highest of (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America's prime rate, or (iii) the LIBOR rate for a one-month period plus 0.50%, plus, in each case, the Applicable Margin. The Agreement matures on June 30, 2018, and, subject to minimum repayment requirements, amounts outstanding under the Agreement may be voluntarily prepaid in whole or in part at any time without premium or penalty. The obligations of the Company under the Agreement and all related documents are unsecured general obligations of the Company.

The Agreement contains representations and warranties, and affirmative, negative and financial covenants customary for such a borrowing agreement, including, without limitation, maintenance of specified statutory surplus levels, a limitation on the amount of debt the Company is permitted to incur, maintenance of a minimum amount of risk based capital in any material insurance subsidiary of the Company, delivery of financial and other information; notification of specified events and occurrences; payment of amounts due under the Agreement; preservation and maintenance of the Company's existence, assets and books and records; and limitations on liens, investments, indebtedness, mergers and acquisitions, asset divestitures, the payment of dividends if a default exists or would result from such payment, changes in the nature of the Company's business, transactions with affiliates, and the use of proceeds.

The Agreement contains customary events of default for credit facilities of this nature, including, without limitation, non-payment defaults, covenant defaults, inaccuracy of representations and warranties, cross-defaults to other indebtedness, bankruptcy and insolvency defaults, inability to pay debt or attachment defaults, judgment defaults, ERISA defaults, invalidity of loan and collateral documents defaults, insurance regulatory defaults, and change of control defaults. If an event of default occurs and is continuing, the lenders may declare the unpaid principal amount of all outstanding loans and interests accrued under the Agreement immediately due and payable and exercise their rights under the other loan documents.

The foregoing is a summary description of certain terms of the Agreement and is qualified in its entirety by reference to the full text of the Agreement, which will be filed as an exhibit to the Company's next periodic report.

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

The information set forth in Item 1.01, above, is incorporated herein by reference.


  Add MCY to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for MCY - All Recent SEC Filings
Copyright © 2014 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.