Item 1.01. Entry into a Material Definitive Agreement
On March 31, 2020, United Fire & Casualty Company (the "Borrower"), a wholly
owned subsidiary of United Fire Group, Inc. (the "Company"), entered into a
credit agreement (the "Credit Agreement") with Wells Fargo Bank, National
Association ("Wells"), as administrative agent (the "Administrative Agent"),
issuing lender, swingline lender and a lender, and the other lenders from time
to time party thereto (collectively with Wells, the "Lenders"), providing for a
$50,000,000 revolving credit facility (the "Revolver"), which includes a
$20,000,000 letter of credit sub-facility and a $5,000,000 swing line loan for
working capital and other general corporate purposes. The Revolver is provided
by the Lenders on an unsecured basis, and the Borrower has the option to
increase the Revolver by $100,000,000 if agreed to by the Lenders providing such
incremental facility.
The entry into the Credit Agreement was completed as part of the Company's
regular course of financial planning and was not initiated as a result of market
conditions resulting from the COVID-19 pandemic. Capitalized terms not otherwise
defined herein are defined in the Credit Agreement. The following description of
the Credit Agreement does not purport to be complete and is qualified in its
entirety by reference to the Credit Agreement, which is attached hereto as
Exhibit 10.1 and incorporated herein by reference.
The Revolver matures on March 31, 2024. The Revolver accrues interest at a per
annum rate equal to LIBOR plus a margin of 1.25% at investment rating A+ (which
margin increases by 0.25% at A, A- and B++ or below, respectively) (such margin
the "LIBOR Margin"). Interest on alternate base rate loans is payable quarterly,
while interest on LIBOR loan is payable on the last day of the applicable
interest period. The Revolver includes a 0% LIBOR floor and customary
LIBOR-replacement provisions. The Borrower is also required to pay a letter of
credit commission equal to the daily amount available to be drawn times the
LIBOR Margin and an issuance fee, in each case, payable quarterly. In addition,
the Borrower is required to pay (i) a per annum unused fee (starting at 0.15%
with a rating of A+, 0.25% at A rating, 0.275% at A- rating and 0.35% at B++ or
below) on the average daily unused portion of the revolving commitment on a
quarterly basis, and (ii) a loan fee at a rate per annum equal to 1.00% on the
average daily outstanding principal amount of the loans, which is calculated on
a quarterly basis and payable on each anniversary date of the Credit Agreement
until payment in full. The Borrower may at any time prepay the Revolver without
premium or penalty (but with respect to prepayment of LIBOR loans, accompanied
by funding indemnification payments).
The Borrower and its subsidiaries are required to comply with various
affirmative and negative covenants that are customary for loans of this type,
including delivery of financial statements of the Company, notice of certain
material events, compliance with laws, limitations on indebtedness, liens, asset
sales, acquisitions and other investments, distributions, affiliate
transactions, line of business, reinsurance agreements and prepayment of other
indebtedness. Financial covenants include (a) ratio of indebtedness to
capitalization of the Borrower and its subsidiaries not greater than 0.35 to
1.0; (b) certain consolidated net worth requirements; (c) risk-based capital
ratio (RBC Ratio) of the Borrower of not less than 175%; and (d) minimum
combined statutory surplus of the Borrower and its subsidiaries of $500,000,000.
The Credit Agreement includes customary events of default, including default in
payments of principals, default in payment of other indebtedness, change of
control and voluntary and involuntary insolvency proceedings, the occurrence of
which would allow the Lenders to accelerate payment of all amounts outstanding
thereunder and terminate any further commitments to lend.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
Information concerning the Company's Credit Agreement is set forth in Item 1.01,
which information is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
A copy of the Company's related press release is attached as Exhibit 99.1 to
this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d)   Exhibits.
               Credit Agreement dated as of March 31, 2020, by and among United
             Fire & Casualty Company, as borrower, the lenders referred to

Exhibit 10.1 therein and Wells Fargo Bank, National Association, as


             administrative agent, swingline lender and issuing lender and Wells
             Fargo Securities, LLC as sole lead arranger and sole bookrunner.

Exhibit 99.1 Press release of United Fire Group, Inc. dated April 2, 2020. Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL


             document.)



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