Athene Holding Ltd. 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Athene Holding Ltd. on July 8, 2022, covering events occurring on July 1, 2022. The filing details the entry into a new material definitive credit agreement to optimize liquidity and working capital.
Key Financial Metrics and Debt
- New Credit Facility: A revolving credit agreement with a syndicate of banks led by Wells Fargo Bank, National Association.
- Commitment Amount: Up to $2.30 billion, with an option to increase to $3.00 billion.
- Term: 364-day commitment terminating on June 30, 2023, subject to extensions or conversion to term loans.
- Interest Rates:
- Adjusted Term SOFR plus a margin of 1.000% to 1.250% (currently 1.100%).
- Base Rate plus a margin of 0.000% to 0.250% (currently 0.100%).
- Undrawn Commitment Fee: 0.100% to 0.175% (currently 0.125%).
- Financial Covenant: Athene Life Re must maintain a minimum Consolidated Net Worth of $9,326,100,000.
- Security: The facility is unsecured.
Material Changes
The Company entered into a new credit agreement while maintaining its existing credit agreement dated December 3, 2019, with Citibank, N.A. as administrative agent. The new agreement is intended to facilitate short-term cash flow needs and investment timing differences.
Outlook, Risks, and Covenants
The Credit Agreement includes customary affirmative and negative covenants restricting:
- Additional indebtedness and guarantees by material subsidiaries.
- Creation of liens on assets and equity interests.
- Fundamental changes and certain affiliate transactions.
- Changes in the nature of the business.
Events of default include payment defaults, covenant breaches, material inaccuracies in representations, cross-defaults, and bankruptcy. Upon default, commitments may be terminated and loans declared due and payable. Interest rates and fees are subject to adjustment based on Athene Life Re's Financial Strength Rating.
Investor Verification Checklist
- Verify the current Financial Strength Rating of Athene Life Re to confirm applicable interest margins and fees.
- Confirm the Company's current Consolidated Net Worth against the $9.326 billion minimum covenant requirement.
- Review the terms of the existing December 2019 Citibank credit agreement to understand total available liquidity.
- Monitor for any public announcements regarding changes to the Financial Strength Rating that would trigger automatic fee adjustments.