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BofA Agents $50MM Revolver for Mercury General

April 04, 2017, 07:13 AM
Filed Under: Insurance

Mercury General Corporation, a multiple-line insurance organization offering personal automobile, homeowners, renters and business insurance, entered into a credit agreement with Bank of America, N.A., as administrative agent, according to a recent SEC filing.

The agreement is a revolving credit facility that provides for loans of up to $50 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, 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, and (iii) the LIBOR rate plus 1.00%, plus, in each case, an additional percentage between 0.125% and 0.625% depending upon the company’s debt to capitalization ratio from time to time.

The agreement matures on March 29, 2022, 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.


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