Bermuda based insurance, reinsurance, run-off and legacy transaction specialist Enstar Group Limited has increased the total commitments under its $1 billion credit facility to support potential future reinsurance deals.
Last year, Enstar and certain subsidiaries entered into a five-year unsecured $600 million revolving credit agreement with a group of lenders.
The terms of the facility also allowed the firm to increase commitments by another $400 million if it elected to, giving it a total of $1 billion to work with.
Now, in a new amendment to its agreement, Enstar has agreed to further increase the total commitments under the facility from $600 million to $760 million, with the optional $400 million still available.
The company explained that the increased commitments would be used to support reinsurance transactions made by its wholly-owned subsidiary, Cavello Bay Reinsurance Limited.
Prior to the 2018 agreement, Enstar’s credit facility allowed the company to borrow up to an aggregate of $665 million.
The large increase indicates that Enstar may be looking to further grow its appetite when it comes to major legacy acquisitions, as well as other emerging opportunities in the re/insurance market.
National Australia Bank Limited, London Branch (NAB) acted as an administrative agent for the agreement, with , National Australia Bank Limited as several L/C issuing bank, and NAB and The Bank of Nova Scotia as joint bookrunners, joint lead arrangers and syndication agents.