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Enstar boosts acquisition war chest with enlarged $1bn credit facility

22nd August 2018 - Author: Steve Evans

Bermuda based insurance, reinsurance, run-off and legacy transaction specialist Enstar Group Limited has boosted its acquisition war chest with the signing of a new credit facility that can provide up to $1 billion of capital.

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The arrangement sees Enstar Group and certain subsidiaries enter into a five year unsecured $600 million revolving credit agreement with a group of lenders, with the terms of the facility also allowing the firm to increase the commitments by another $400 million if it elects to.

The facilities up to $1 billion will be available to Enstar should it require the capital to fund permitted acquisitions and for general corporate purposes, the announcement states.

This new credit facility is a refresh and enlargement of Enstar’s old facility, which it terminated in connection with the signing.

That now expired credit facility allowed Enstar to borrow up to an aggregate of $665 million, hence this new facility signals a growing appetite perhaps, increasing the size by one-third to $1 billion.

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Lenders for this new credit facility include National Australia Bank which has committed $105 million, as too have Barclays, Wells Fargo and Sun Trust.

J.P. Morgan Bank has committed $70 million, along with HSBC and ING, while Lloyd’s Bank has committed $37.5 million to the facility.

The $1 billion credit facility will enable Enstar to finance any major legacy acquisitions it has in the pipeline as well as react to opportunities as they emerge in the re/insurance market.

Recently Enstar, alongside private equity firm Madison Dearborn Partners, funded a $350 million portion of the AmTrust Financial Services take-private transaction.

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