Business Context and Reporting Period
Assurant, Inc. filed this Form 8-K on September 21, 2011, to disclose the creation of a new direct financial obligation. The company is incorporated in Delaware and maintains its principal executive offices in New York, New York.
Key Financial Metrics and Debt Structure
The filing details a new four-year unsecured revolving credit agreement with an aggregate capacity of $350 million. This facility replaces a prior three-year $350 million revolving credit facility that was scheduled to expire in December 2012. The new agreement allows for revolving loans and the issuance of syndicated letters of credit. Proceeds may be used for the company's commercial paper program or general corporate purposes. The total amount available under the agreement may be increased to $525 million subject to certain conditions.
Material Changes Versus Prior Period
- Facility Replacement: The new Credit Agreement terminated the prior facility effective upon the new agreement's execution.
- Term Extension: The new facility extends the maturity date to September 2015, compared to the prior facility's December 2012 expiration.
- Capacity Flexibility: The new agreement includes an option to increase the total credit line from $350 million to $525 million, a feature not explicitly detailed for the prior facility in this text.
Guidance, Risks, and Covenants
The Credit Agreement contains customary affirmative, negative, and financial covenants. It also includes customary events of default. The filing notes that the occurrence of an event of default may cause all unpaid principal, accrued interest, and other obligations to become immediately due and payable. The filing does not provide specific management commentary on future revenue guidance, profit margins, or cash flow projections beyond the terms of this credit facility.
Important Facts for Investor Verification
- Verify the specific financial covenants and negative covenants included in the new Credit Agreement to assess compliance risks.
- Confirm the conditions required to increase the credit facility from $350 million to $525 million.
- Review the company's current utilization of the $350 million facility and its commercial paper program.
- Check for any subsequent amendments or events of default related to this agreement in future filings.