Bermudians borrow to bolster balance sheets
“Class of 2005” Bermudian reinsurer Validus Holdings Ltd has bolstered funds as it announced it has entered into credit agreements totalling $700mn with a syndicate of lenders.
The credit consists of a $500mn five-year secured Letter of Credit facility and a $200mn three-year unsecured Letter of Credit facility.
JP Morgan Securities and Deutsche Bank Securities acted as joint lead arrangers and joint bookrunners for the facilities.
Separately, compatriot White Mountains Insurance Re Group Ltd announced it intends to offer and sell approximately $400mn of its senior notes as it restructures its balance sheet.
The company said it intends to use the proceeds of the notes, which are due in 2017, to pay a cash distribution to its parent company. The majority of this distribution would repay its outstanding borrowings under a credit facility, it explained.
Rating agency Moody’s Investors Service has assigned a Baa3 rating to the proposed $400mn 10-year senior unsecured note offering.