Ace Ltd., a Swiss property and casualty insurance business, got a $1 billion unsecured credit line to replace debt it obtained in 2007.
The full amount may be used for letters of credit and as much as $300 million for revolving loans, the company said today in a regulatory filing. Ace may increase the pact to $1.5 billion.
Wells Fargo & Co. led a group of lenders providing the loan to the Zurich, Switzerland-based insurer, according to the filing. The deal, which may also be used for working capital and general corporate purposes, replaces $1.5 billion of credit agreements from five years ago.
Ace operates in 53 countries, providing commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance, according to its website.
Under a revolver, money can be borrowed again once it’s repaid.