Business Context and Reporting Period
Assurant, Inc. filed this Form 8-K on April 29, 2005, to disclose the entry into a material definitive agreement. The company is incorporated in Delaware and maintains its principal executive offices in New York, New York.
Key Financial Metrics and Agreement Details
The filing details a new amended and restated revolving credit facility rather than reporting period-specific financial performance metrics such as revenue or profit.
- Credit Facility Amount: Up to $500 million, with an option to increase to $750 million.
- Term: Available until April 2010, subject to no default.
- Interest Rates: Variable, based on LIBOR plus a margin of 0.300% to 0.750% or the higher of the prime rate or 0.500% over the federal funds rate.
- Commitment Fee: Ranges from 0.070% to 0.150% per annum on the unused portion.
- Debt Covenant: Consolidated debt to consolidated capitalization ratio must not exceed 0.35 to 1.0.
- Net Worth Covenant: Consolidated adjusted net worth must be at least $2,477,212,000 plus 50% of consolidated net income for fiscal quarters ending after December 31, 2004, plus 100% of net cash proceeds from capital stock issuances after that date.
Material Changes
The material change reported is the restructuring of the company's credit facilities. The new agreement replaces or amends prior arrangements to provide unsecured funding, including loans to fund maturing commercial paper. The filing does not provide comparative financial data against prior periods.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future earnings, or specific risk factors beyond the standard covenants and events of default associated with the credit facility. The agreement includes customary affirmative and negative covenants. Interest rates and fees are contingent upon the company's senior unsecured debt rating.
Key Facts for Investor Verification
- Verify the company's current senior unsecured debt rating to determine the applicable interest rate margin and commitment fee.
- Confirm the company's compliance with the 0.35 to 1.0 debt-to-capitalization ratio covenant.
- Monitor the company's consolidated adjusted net worth against the $2.477 billion baseline plus income and equity issuance adjustments.
- Check for any subsequent filings regarding the utilization of the $500 million facility or the exercise of the option to increase it to $750 million.