Business Context and Reporting Period
Assurant, Inc. filed a Current Report on Form 8-K dated September 16, 2014. The filing discloses the creation of a new direct financial obligation in the form of a revolving credit agreement.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity ratios. The primary financial metric disclosed is the establishment of a new credit facility:
- New Credit Facility: $400 million five-year unsecured revolving credit agreement.
- Expiration Date: September 2019.
- Expansion Option: The total amount available may be increased to $525 million subject to certain conditions.
- Usage of Proceeds: Backstopping the commercial paper program and general corporate purposes.
Material Changes Versus Prior Period
The new Credit Agreement replaces the Company's prior four-year $350 million revolving credit facility entered into on September 21, 2011. The prior facility, which was scheduled to expire in September 2015, was terminated upon the effectiveness of the new agreement. This represents an increase in available credit capacity of $50 million and an extension of the maturity date.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond standard covenant language. The Credit Agreement includes customary affirmative, negative, and financial covenants. An event of default under the agreement could cause all unpaid principal, accrued interest, and other obligations to become immediately due and payable.
Important Facts for Investor Verification
- Verify the specific financial covenants included in the new Credit Agreement to assess compliance requirements.
- Confirm the conditions required to exercise the option to increase the credit facility from $400 million to $525 million.
- Review the Company's commercial paper program to understand the extent to which this facility is utilized as a backstop.
- Check subsequent filings for any draws on the facility or changes in the Company's overall debt structure.