Enstar Group Limited Announces New Revolving Credit Facility
6/14/2011 9:05 AM EST
Enstar Group Limited
Press release
Enstar Group Limited Announces New Revolving Credit Facility
HAMILTON, Bermuda, June 14, 2011 (GLOBE NEWSWIRE) -- Enstar Group Limited
(Nasdaq:ESGR) today announced that it has entered into a new three-year $250
million revolving credit facility (the "Credit Facility") with National
Australia Bank Limited and Barclays Corporate, the corporate banking division
of Barclays Bank PLC. Enstar is permitted to use the borrowings under the
Credit Facility to prepay certain existing credit facilities, to fund permitted
acquisitions and for general corporate purposes. Enstar's ability to draw on
the Credit Facility is subject to customary conditions. In addition, as a
condition to Enstar's initial borrowing under the Credit Facility, Enstar must
prepay approximately $167 million outstanding under existing credit facilities.
The Credit Facility is secured by a first priority lien on the stock of certain
of Enstar's subsidiaries and certain bank accounts held with Barclays Bank PLC
in the name of Enstar and into which amounts received in respect of any capital
release from certain of Enstar's subsidiaries are required to be paid. The
interest rate is LIBOR plus 2.75%, plus an incremental amount tied to certain
regulatory costs that may be incurred by the lenders, if any. During the
existence of any payment default, the interest rate is increased by 1.0%. The
unused portion of the Credit Facility will be subject to a commitment fee of
1.10%. The Credit Facility is subject to various financial and business
covenants, including limitations on mergers and consolidations, acquisitions,
indebtedness and guarantees, restrictions as to dispositions of stock and
dividends, and limitations on liens on stock.
Enstar, a Bermuda company, acquires and manages insurance and reinsurance
companies in run-off and portfolios of insurance and reinsurance business in
run-off, and provides management, consultancy and other services to the
insurance and reinsurance industry.
The Enstar Group Limited logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5734
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include statements regarding the intent, belief or current
expectations of Enstar and its management team. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those projected in the forward-looking statements as a
result of various factors. Important risk factors regarding Enstar may be found
under the heading "Risk Factors" in Enstar's Form 10-K for the year ended
December 31, 2010, and are incorporated herein by reference. Furthermore,
Enstar undertakes no obligation to update any written or oral forward-looking
statements or publicly announce any updates or revisions to any of the
forward-looking statements contained herein, to reflect any change in its
expectations with regard thereto or any change in events, conditions,
circumstances or assumptions underlying such statements, except as required by
law.
CONTACT: Richard J. Harris(441) 292-3645