AmTrust Corporate Capital Limited, AmTrust Corporate Member Limited, AmTrust Corporate Member Two Limited and ANV Corporate Name Limited Enters into Amending and Restating Agreement Relating to its 300 Million Credit Facility Agreement
Nov 8 16
On November 3, 2016, AmTrust Financial Services Inc. (as guarantor), and five of its wholly-owned subsidiaries, AmTrust International Insurance Ltd. (as account party), AmTrust Corporate Capital Limited, AmTrust Corporate Member Limited, AmTrust Corporate Member Two Limited and ANV Corporate Name Limited (as corporate members and collectively with the guarantor and the account party, the company) entered into an amending and restating agreement relating to its 300 million credit facility agreement with ING Bank, N.V., London Branch, The Bank of Nova Scotia, London Branch and Bank of Montreal, London Branch. The amended and restated credit facility increases the maximum amount of the letter of credit facility to 515 million to be used to support the company's capacity at Lloyd's as a member and/or reinsurer of syndicates 2526, 1206, 44, 1861 and 5820 for the 2017 underwriting year of account, as well as prior open years of account. The amended and restated credit facility contains customary covenants for facilities of this type, including restrictions on indebtedness and liens, limitations on mergers, transactions with affiliates and the sale of assets, and requirements to maintain certain consolidated net worth, statutory surplus, leverage and fixed charge coverage ratios. The amended and restated credit facility also provides for customary events of default, including, without limitation, failure to pay principal, interest or fees when due, failure to comply with certain covenants, any representation or warranty made by the company being false or misleading in any material respect, default under certain other indebtedness, certain insolvency or receivership events affecting the company and its subsidiaries, the occurrence of certain material judgments, or a change in control of the account party or the corporate member. Upon an event of default, the lender may immediately terminate its obligations to issue letters of credit, declare the company's obligations under the amended and restated credit facility to become immediately due and payable, and require the company to deposit collateral with a value equal to 100% of the aggregate face amount of any outstanding letters of credit consisting of cash or other specified collateral including time deposits, certificates of deposit, money market deposits and U.S. government securities subject to varying advance rates. The ability to have letters of credit issued under this amended and restated facility expires on July 31, 2017 and the maturity date for the facility is July 31, 2021. The facility is 35% secured by a pledge of a collateral account established in the United States pursuant to a pledge and security agreement and in the United Kingdom pursuant to account security deeds dated as of November 26, 2013, November 24, 2015, April 14, 2016 and November 3, 2016. In addition to upon an event of default as discussed above, the collateral account will be required to be 100% funded upon the occurrence of certain specified events, including the A.M.
AmTrust Financial Services, Inc., AmTrust International Insurance Ltd. and National General Re Ltd. Enters into Restatement Agreement
Jul 29 16
On July 28, 2016, AmTrust Financial Services, Inc., AmTrust International Insurance Ltd. and National General Re Ltd. entered into a restatement agreement to the $250 million credit agreement dated September 15, 2014 among the company, as Administrative Agent, ACP Re Ltd., ACP Re Holdings, LLC, as guarantor, and AIIL and NG Re Ltd., as Lenders. The parties to the restatement agreement have agreed to restate the credit agreement as a result of a $200 million contribution by the Michael Karfunkel Family 2005 Trust and members of the Michael Karfunkel family to CastlePoint National Insurance Company. The contribution will be made in connection with the conservation plan developed by the Commissioner of Insurance of the State of California for CNIC as successor by merger to all of its affiliated Tower Group International Ltd. U.S. insurance companies. The following restated terms of the Credit Agreement will become effective upon the approval of the conservation plan by the Superior Court of the State of California, which is supervising the Conservation Plan process: The borrower will become ACP Re Holdings, LLC. The amounts borrowed will be secured by equity interests, cash and cash equivalents, other investments held by ACP Re Holdings, LLC and proceeds of the foregoing in an amount equal to the requirements of the Maintenance Covenant. The maturity date will change from September 15, 2021 to the twentieth anniversary of the date on which the restatement becomes effective; Interest on the outstanding principal balance of $250 million will change from a fixed annual rate of 7% (payable in cash, semi-annually in arrears) to a fixed annual rate of 3.7% (payable in cash, semi-annually in arrears), provided that up to 1.2% thereof may be paid in kind.
Amtrust International Insurance Ltd. Appoints Andrew Gibbs as Chairman and Chief Operating Officer, Effective from September 6, 2016
Apr 28 16
AmTrust Financial Services Inc. announced that Andrew Gibbs will join the company as Chairman and Chief Operating Officer of AmTrust International Insurance Ltd. Mr. Gibbs was previously the Director of Insurance Supervision at the Bermuda Monetary Authority (“BMA”). Effective September 6, 2016, he will assume responsibilities for AmTrust International Insurance Ltd.’s operations in Bermuda and also serve as a senior executive, providing strategic advice, for the company’s European subsidiaries. Before joining the BMA, Mr. Gibbs held senior executive positions at Validus Holdings Ltd., where he served as Group Controller, and the ACE Group of Companies.