Business Context and Reporting Period
This Form 8-K Current Report was filed by Greenlight Capital Re, Ltd. on November 9, 2007, covering events occurring on November 6, 2007, and November 8, 2007. The registrant is a Cayman Islands entity, and the report primarily concerns its principal subsidiary, Greenlight Reinsurance, Ltd.
Key Financial Metrics and Agreements
- Debt and Liquidity: The Company amended its Letter of Credit Facility with Citibank, N.A., increasing the maximum amount from US$200,000,000 to US$400,000,000. This increase has retroactive effect as of August 28, 2007.
- Credit Ratings: A.M. Best Company affirmed the Company's Financial Strength Rating (FSR) at A- (Excellent) and Issuer Credit Rating (ICR) at "a-". The outlook for all ratings is stable.
- Revenue and Profit: The filing text does not provide specific values for revenue, profit, cash flow, or margins.
Material Changes
The primary material change reported is the doubling of the available credit facility capacity to US$400 million. No other material changes to financial performance or operational status were disclosed in this specific report.
Outlook, Risks, and Management Commentary
Management commentary is limited to the execution of the credit facility amendment and the affirmation of credit ratings. The stable outlook from A.M. Best suggests no immediate deterioration in the Company's financial strength. The filing does not disclose specific new risks, contingencies, or unusual items beyond the standard legal disclaimers regarding the credit agreement.
Investor Verification Checklist
- Verify the terms and covenants of the amended Letter of Credit Facility in Exhibit 10.1.
- Confirm the utilization rate of the new US$400 million facility limit.
- Review the full A.M. Best press release for details on the rating affirmation methodology.
- Check subsequent filings for any drawdowns on the increased credit line.