Renaissancere holdings ltd. enters in to amended and restated letter of credit reimbursement agreement
Effective as of november 7, 2019, renaissance reinsurance ltd. (rrl) entered into a letter of credit facility (the facility), evidenced by an amended and restated letter of credit reimbursement agreement (the reimbursement agreement), by and among rrl, as borrower, ing bank n.v., london branch (ing), as agent (the agent) and as a lender, bank of montreal, london branch, as a lender (bmo), and citibank europe plc, as a lender (cep, and, together with bmo and ing, the lenders), and secured by certain ancillary agreements. the reimbursement agreement amends and restates a letter of credit reimbursement agreement, dated as of november 23, 2015 (as amended, restated, supplemented or otherwise modified), by and among rrl, the lenders and the agents party thereto (the existing agreement). the existing agreement provided for the issuance by the lenders of two letters of credit for the account of rrl to support business written by rrl’s lloyd’s syndicate, syndicate 1458: one denominated in u.s. dollars, which is currently outstanding in the amount of $255 million, and one denominated in pounds, which has previously been cancelled. the reimbursement agreement increases the letter of credit denominated in u.s. dollars (the u.s. dollar loc) to $290 million. if there is no existing default and upon notice to the agent, rrl may, from time to time, request that the u.s. dollar loc be amended to increase the stated amount or issue a new letter of credit denominated in u.s. dollars, in an aggregate amount for all such increases or issuances not to exceed $140 million. the facility terminates four years from the date of notice from ing to the beneficiary of the letters of credit issued under the facility, which notice is required to be given not later than december 31, 2019, unless such date is extended with the consent of all the lenders. under the reimbursement agreement and related pledge and security agreement between rrl and ing, as collateral agent, rrl is obligated to pledge to the lenders at all times during the term of the facility certain eligible securities with a collateral value (determined as provided in the reimbursement agreement) that, (i) after a full collateralization event (as defined in the reimbursement agreement) occurs, equals or exceeds, at rrl’s election, 100% of the aggregate amount of its then-outstanding letters of credit, (ii) after a partial collateralization event (as defined in the reimbursement agreement) occurs, greater than or equal to 60% but less than 100% of the aggregate amount of its then-outstanding letters of credit, and (iii) prior to the occurrence of a full collateralization event or partial collateralization event, 0% of the aggregate amount of its then-outstanding letters of credit. letter of credit fees, which vary based on the level of collateralization of the facility, and certain other fees will be payable pursuant to the terms of the reimbursement agreement. in the reimbursement agreement, rrl makes representations and warranties that are customary for facilities of this type and agrees that it will comply with certain informational undertakings, including those regarding the delivery of quarterly and annual financial statements, and other covenants, including maintaining a minimum net worth. if an event of default (as defined in the reimbursement agreement) should occur under the facility and be continuing, the lenders may exercise certain remedies, including declaring all outstanding obligations of rrl under the reimbursement agreement and related credit documents due and payable and taking certain actions with respect to the collateral pledged by rrl (including the sale thereof).
