Business Context and Reporting Period
Company: GREENLIGHT CAPITAL RE, LTD.
Filing Type: Form 8-K (Current Report)
Date of Report: June 17, 2010
Reporting Entity: Greenlight Reinsurance, Ltd. (principal subsidiary of the registrant)
Jurisdiction: Cayman Islands
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general liquidity metrics. The primary financial metric disclosed is the expansion of a credit facility:
- Letter of Credit Facility Increase: Aggregate amount increased from $25 million to $60 million.
- Effective Date: June 17, 2010.
- Counterparty: Butterfield Bank (Cayman) Limited.
Material Changes Versus Prior Period
The Company entered into an amended and restated letter of credit agreement, superseding the original agreement. The material change is the increase in the facility size by $35 million (from $25 million to $60 million). The agreement includes an automatic extension clause of 364 days beyond the termination date of June 30, 2011, subject to no events of default or termination notices.
Guidance, Outlook, and Covenants
The filing contains no forward-looking guidance, earnings outlook, or management commentary regarding future performance. However, it details specific restrictive covenants and conditions attached to the new facility:
- Covenants: Includes customary events of default and restrictions on liens on collateral, transactions with affiliates, mergers, and sales of assets.
- Requirements: The Company must maintain solvency and meet certain minimum pledged equity requirements.
- Termination: Either party may terminate the agreement with 90 days' written notice prior to the termination date.
Investor Verification Checklist
- Verify the current utilization rate of the new $60 million letter of credit facility.
- Confirm compliance with the minimum pledged equity requirements and solvency covenants.
- Review the specific terms of the "customary events of default" to assess potential triggers for facility termination.
- Monitor the automatic extension status as the June 30, 2011 termination date approaches.