Business Context and Reporting Period
Company: Greenlight Capital Re, Ltd. (Greenlight Reinsurance, Ltd.)
Filing Type: Form 8-K (Current Report)
Date of Report: May 7, 2015
Event: Entry into a Material Definitive Agreement regarding a credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. The primary financial metric disclosed relates to debt capacity and liquidity facilities:
- Facility Type: Amended and Restated Letter of Credit Facility.
- Counterparty: Bank of America, N.A.
- Maximum Available Amount: US$120,000,000.
- Collateral: Secured by pledges of cash and securities selected by the Company.
- Term: Available until July 11, 2015, with an automatic annual extension of 364 days unless cancelled with 90 days' notice.
Material Changes Versus Prior Period
The Company amended and replaced its facility agreement dated January 18, 2011. The material change is a reduction in the maximum available facility amount:
- Previous Maximum: US$200,000,000.
- New Maximum: US$120,000,000.
- Effective Date: May 7, 2015.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the execution of the Amended and Restated Master Agreements, which include customary events of default and covenants.
Risks and Contingencies:
- Covenants: Limitations on liens on collateral and specific letter of credit collateralization requirements.
- Default Provisions: Includes a change of control default provision.
- Termination: Termination of the facility does not terminate outstanding letters of credit existing at the termination date.
Outlook: The filing does not provide specific financial guidance or future earnings projections.
Investor Verification Checklist
- Verify the current utilization of the US$120,000,000 facility to assess immediate liquidity needs.
- Review the specific collateral pledged (cash and securities) to understand asset exposure.
- Confirm the status of any outstanding letters of credit that would remain active if the facility is terminated.
- Monitor compliance with the new collateralization requirements and lien limitations.