Business Context and Reporting Period
This Form 8-K was filed by GREENLIGHT CAPITAL RE, LTD. on December 16, 2011. The report discloses the entry into material definitive agreements by the Company's principal subsidiary, Greenlight Reinsurance, Ltd., involving amendments to existing letter of credit facilities.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, or general debt figures. The specific financial metrics disclosed relate to the expansion of credit facilities:
- Bank of America Facility: Increased from $100 million to $200 million.
- JPMorgan Chase Facility: Increased from $50 million to $100 million.
- Total Facility Increase: $150 million in aggregate capacity.
Material Changes
On December 16, 2011, the Company amended two letter of credit facility agreements to increase their aggregate amounts effective immediately:
- Bank of America, N.A.: The facility limit was doubled from $100 million to $200 million.
- JPMorgan Chase Bank, N.A.: The facility limit was doubled from $50 million to $100 million.
- Terms: The filing states that no other material changes were made to the original agreements.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or specific risk factors beyond the disclosure of the facility amendments. The text does not provide a clear value for liquidity positions outside of the new facility limits.
Investor Verification Checklist
- Verify the utilization rate of the newly expanded $300 million total letter of credit capacity.
- Confirm the interest rates and fees associated with the amended Bank of America and JPMorgan Chase facilities.
- Review the Company's most recent 10-K or 10-Q to understand the strategic rationale for doubling these specific facilities.
- Check for any covenants or collateral requirements attached to the increased credit lines.