F&G Annuities & Life, Inc. — Form 8-K Summary
Business context and reporting period
F&G Annuities & Life, Inc. filed a Current Report on Form 8-K dated February 16, 2024. The filing reports an amendment and restatement of the company’s existing revolving credit facility. It does not report quarterly or annual operating results.
Key financial and credit terms
- The existing $665 million credit agreement was amended and restated.
- Total revolving credit commitments increased to $750 million.
- The maturity date was extended, but the filing text does not provide the new maturity date.
- Revolving loans generally bear interest at either a base rate plus a margin of 30 to 80 basis points or Term SOFR plus a margin of 130 to 180 basis points, based on F&G’s senior unsecured long-term debt ratings.
- At the stated ratings of BBB- by S&P, Ba1 by Moody’s and BBB by Fitch, the applicable Term SOFR margin is 165 basis points.
- A quarterly facility fee of 20 to 45 basis points applies to the entire facility, depending on debt ratings.
- The filing provides no revenue, profit, cash flow, margin, balance-sheet liquidity, debt-balance, or borrowing-utilization figures.
Material changes versus the prior agreement
- The facility size increased by $85 million, from $665 million to $750 million, representing approximately 12.8% additional committed capacity.
- The maturity date was extended.
- Financial covenants remained essentially unchanged from the existing credit agreement.
Outlook, risks, contingencies and unusual items
- F&G remains subject to customary affirmative, negative and financial covenants, including minimum net worth, maximum debt-to-capitalization, limits on liens and indebtedness, investment and affiliate-transaction restrictions, and limitations on dividends and other restricted payments.
- Under certain circumstances, Fidelity & Guaranty Life Insurance Company is subject to a minimum risk-based capital test.
- Certain F&G subsidiaries guarantee the facility.
- Events of default may result in increased interest rates, acceleration of outstanding obligations and termination of lender commitments. Insolvency or bankruptcy-related defaults can trigger automatic acceleration and commitment termination.
- Current debt ratings affect the applicable interest-rate margin and facility fee; a ratings downgrade could increase borrowing costs.
- The credit agreement is Exhibit 10.1 to the filing. The filing does not state whether any amounts were outstanding or drawn under the facility on February 16, 2024.
Investor verification checklist
- Verify the new maturity date and detailed borrowing mechanics in Exhibit 10.1.
- Confirm the amount outstanding and available capacity under the $750 million facility.
- Review compliance with minimum net worth, debt-to-capitalization and risk-based-capital covenants.
- Assess the effect of any changes in F&G’s credit ratings on interest margins and facility fees.
- Review guarantees, collateral or other obligations and the complete events-of-default provisions in the amended agreement.