The Travelers Companies, Inc. (NYSE:TRV) announced a new $1.2 billion five-year revolving credit agreement with a group of financial institutions. Signed on May 15, it replaces a previous $1.0 billion facility.
Citibank, N.A. serves as administrative agent, with Citibank, BofA Securities, and JPMorgan Chase Bank as joint lead arrangers and bookrunners. Bank of America and JPMorgan Chase are co-syndication agents.
Interest rates are based on a base rate plus a margin or a term rate based on SOFR plus a margin. A facility fee applies on each lender's commitment regardless of usage.
The agreement requires Travelers to maintain consolidated net worth above $17.8 billion after subtracting goodwill. The company shows strong finances with a 25% return on equity and a 0.29 debt-to-equity ratio.
The credit facility expires on May 15, 2031, and may be extended. Borrowings can be used for general corporate purposes. Travelers can request an increase up to $1.8 billion subject to lender consent.
