New York property-casualty insurer The Travelers Cos., with major operations in Hartford, has signed a new, $1 billion credit agreement with a syndicate of lenders, a regulatory filing shows.
The three-year revolving credit line replacing Travelers’ $1 billion five-year revolving credit fund that was to expire June 10, according to the filing with the Securities and Exchange Commission.
A Travelers spokesman did not immediately respond to HBJ Today’s call to explain the insurer’s plans for the money.
The syndicate includes Bank of America, Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities, SEC documents said.
The interest rates on the loans are generally based on a base rate plus a specified margin or the Eurodollar rate plus a specified margin. In addition, Travelers will pay a facility fee to its lenders each time it taps into the revolving fund, SEC documents said.Â
The credit agreement, which can be increased to $1.5 billion, is scheduled to expire on June 10, 2013.
