Item 1.01. Entry into a Material Definitive Agreement.
On June 15, 2022, The Travelers Companies, Inc. (the "Company") entered into a
$1.0 Billion Five-Year Revolving Credit Agreement (the "Credit Agreement") with
a syndicate of financial institutions, including JPMorgan Chase Bank, N.A., as
administrative agent; JPMorgan Chase Bank, N.A., BofA Securities, Inc.,
Citibank, N.A., U.S. Bank National Association, and Wells Fargo Securities, LLC
as joint lead arrangers and joint bookrunners; and Bank of America, N.A.,
Citibank, N.A., U.S. Bank National Association and Wells Fargo Bank, National
Association as co-syndication agents. The Credit Agreement replaced the
Company's previous $1.0 Billion Five-Year Revolving Credit Agreement, which was
terminated on June 15, 2022.
The Credit Agreement provides for up to $1.0 billion of credit. The interest
rates applicable to loans under the Credit Agreement are generally based on a
base rate plus a specified margin or a term rate based on SOFR (including a
credit spread adjustment) plus a specified margin. In addition, the Company will
pay a facility fee on each lender's commitment irrespective of usage. The
applicable margin and the amount of the facility fee vary based upon the
Company's long-term senior unsecured non-credit-enhanced debt ratings.
Pursuant to covenants in the Credit Agreement, the Company must maintain an
excess of consolidated net worth (as defined in the Credit Agreement) over
goodwill and other intangible assets of not less than $13,900,000,000. In
addition, the Credit Agreement contains other customary restrictive covenants as
well as certain customary events of default, including with respect to a change
in control. Unless terminated earlier by the Company, the Credit Agreement is
scheduled to expire on June 15, 2027, subject to extension with lender consent
according to the terms of the Credit Agreement. Borrowings under the Credit
Agreement may be used for general corporate purposes of the Company and its
subsidiaries.
Pursuant to the terms of the Credit Agreement, the Company has an option to
request an increase of the credit available under the facility up to a maximum
facility amount of $1.5 billion, subject to the consent of lenders and the
satisfaction of certain conditions.
The foregoing description is qualified by reference to the Credit Agreement, a
copy of which is attached hereto as Exhibit 10.1 and incorporated by reference
herein.
Certain of the lenders under the Credit Agreement, or their affiliates, have
provided, and may in the future from time to time provide, certain commercial
and investment banking, financial advisory and other services for the Company
and its subsidiaries, for which they have in the past and may in the future
receive customary fees and commissions.
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 above under Item 1.01 is hereby incorporated by
reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
10.1 Revolving Credit Agreement, dated June 15, 2022, between the Company
and a syndicate of financial institutions.
101.1 Pursuant to Rule 406 of Regulation S-T, the cover page to this Current
Report on Form 8-K is formatted in Inline XBRL.
104.1 Cover Page Interactive Data File (Embedded within the Inline XBRL
document and included in Exhibit 101.1.)
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