Business Context and Reporting Period
This Form 8-K is filed by Willis Group Holdings Limited (the "Company") for the reporting period of October 17, 2005. The filing reports on a material definitive agreement entered into by Willis North America Inc., a subsidiary of the Company.
Key Financial Metrics
The filing details the establishment of a new $300 million five-year revolving credit facility. This facility includes a $50 million sublimit for swingline loans and matures on October 17, 2010. The agreement contains covenants regarding a maximum leverage ratio and a minimum interest coverage ratio. The filing does not provide specific values for revenue, profit, cash flow, margins, or total debt levels for the period.
Material Changes Versus Prior Period
- Facility Replacement: The new $300 million facility replaces the previous $150 million revolving credit facility under an agreement entered into in December 2003.
- Term Loan Repayment: The term loans from the 2003 agreement were repaid in July 2005 using proceeds from a $600 million public bond issue.
- Structure Change: The new agreement consolidates the credit structure into a revolving facility, removing the term loan component previously held.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard covenants of the credit agreement. The agreement is guaranteed by the Company and other subsidiaries. The facility is provided by a group of fourteen financial institutions led by Banc of America Securities Limited and Royal Bank of Scotland plc.
Key Facts for Investor Verification
- Confirmation of the $300 million revolving credit facility size and October 17, 2010 maturity date.
- Verification of the repayment of the prior term loans in July 2005 via the $600 million bond issue.
- Review of the specific maximum leverage ratio and minimum interest coverage ratio covenants in the attached agreement (Exhibit 10.27).
- Assessment of the Company's ongoing commercial relationships with the fourteen lending institutions.