Business Context and Reporting Period
Company: GREENLIGHT CAPITAL RE, LTD.
Filing Type: Form 8-K (Current Report)
Date of Report: December 15, 2008
Reporting Period: Event date December 15, 2008; Report signed December 22, 2008.
Context: The registrant's principal subsidiary, Greenlight Reinsurance, Ltd., executed a material definitive agreement involving the transfer of banking relationships and security interests.
Key Financial Metrics
This filing is a current report regarding a specific corporate event and does not contain periodic financial statements. Consequently, the filing text does not provide clear values for revenue, profit, cash flow, margins, debt levels, or liquidity metrics.
Material Changes
- Banking Relationship Transfer: On December 15, 2008, Greenlight Reinsurance, Ltd. entered into a deed of novation to transfer a letter of credit agreement (originally dated June 6, 2007) from Unicredit Bank Cayman Islands Ltd. to Butterfield Bank (Cayman) Limited, effective December 19, 2008.
- Security Interest Transfer: A concurrent novation agreement was executed with Unicredit Bank, Butterfield Bank, and Goldman Sachs & Co. to transfer Unicredit Bank's security interest in collateral pledged under the letter of credit facility to Butterfield Bank.
- Terms: All other terms, conditions, and covenants of the original letter of credit agreement and securities control agreement remained unchanged.
Guidance, Outlook, and Risks
The filing does not contain management commentary, forward-looking guidance, or specific risk factors beyond the execution of the novation. The transaction appears to be an administrative transfer of banking facilities without altering the underlying financial obligations or covenants.
Investor Verification Checklist
- Verify the effective date of the transfer to Butterfield Bank (December 19, 2008).
- Confirm that the collateral pledged under the letter of credit facility remains sufficient and unchanged despite the change in secured party.
- Review the original June 6, 2007 letter of credit agreement to understand the specific covenants that remain in effect.
- Check subsequent filings for any financial impact resulting from the change in banking counterparties.