MERCURY GENERAL CORPORATION (NYSE:MCY) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
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Entry Into a Material Definitive Agreement.
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entered into a Credit Agreement (the Agreement), with Bank of
America, N.A., as administrative agent (Bank of America), and the
Lenders party thereto.
loans of up to $50 million and bears interest, at the Companys
option, at either (a) the rate per annum equal to the British
Bankers Association London Interbank Offered Rate (LIBOR) plus an
additional percentage between 1.125% and 1.625% depending upon
the Companys debt to capitalization ratio from time to time, or
(b) a fluctuating rate per annum equal to the highest of (i) the
Federal Funds Rate plus 0.50%, (ii) Bank of Americas prime rate,
and (iii) the LIBOR rate plus 1.00%, plus, in each case, an
additional percentage between 0.125% and 0.625% depending upon
the Companys debt to capitalization ratio from time to time. The
Agreement matures on March 29, 2022, and, subject to minimum
repayment requirements, amounts outstanding under the Agreement
may be voluntarily prepaid in whole or in part at any time
without premium or penalty. The obligations of the Company under
the Agreement and all related documents are unsecured general
obligations of the Company.
affirmative, negative and financial covenants customary for such
a borrowing agreement, including, without limitation, maintenance
of a minimum consolidated net worth and of specified statutory
surplus levels, a limitation on the amount of debt the Company is
permitted to incur, maintenance of a minimum amount of risk based
capital in any material insurance subsidiary of the Company,
delivery of financial and other information; notification of
specified events and occurrences; payment of amounts due under
the Agreement; preservation and maintenance of the Companys
existence, assets and books and records; and limitations on
liens, investments, indebtedness, mergers and acquisitions, asset
divestitures, the payment of dividends if a default exists or
would result from such payment, changes in the nature of the
Companys business, transactions with affiliates, burdensome
agreements, and the use of proceeds.
facilities of this nature, including, without limitation,
non-payment defaults, covenant defaults, inaccuracy of
representations and warranties, cross-defaults to other
indebtedness, bankruptcy and insolvency defaults, inability to
pay debt or attachment defaults, judgment defaults, ERISA
defaults, invalidity of loan and collateral documents defaults,
insurance regulatory defaults, and change of control defaults. If
an event of default occurs and is continuing, the lenders may
declare the unpaid principal amount of all outstanding loans and
interests accrued under the Agreement immediately due and payable
and exercise their rights under the other loan documents.
Agreement and is qualified in its entirety by reference to the
full text of the Agreement, a copy of which is filed as Exhibit
10.1 to this Current Report on Form 8-K and is incorporated
herein by this reference.
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Item 2.03.
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Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
Form 8-K is incorporated into this Item 2.03 by reference.
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Item 9.01.
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Financial Statements and Exhibits
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10.1
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Credit Agreement, dated as of March 29, 2017, by and
among Mercury General Corporation, Bank of America, as Administrative Agent, and the Lenders party thereto. |
About MERCURY GENERAL CORPORATION (NYSE:MCY)
Mercury General Corporation is an insurance holding company. The Company is engaged in writing personal automobile insurance through approximately 10 insurance subsidiaries in over 10 states. The Company operates through Property and Casualty business segment. The Company also writes homeowners, commercial automobile, commercial property, mechanical breakdown and umbrella insurance. The Company offers a range of automobile coverage, such as collision, property damage, bodily injury (BI), comprehensive, personal injury protection (PIP), underinsured and uninsured motorist, and other hazards. The Company offers a range of homeowner’s coverage, such as dwelling, liability, personal property, fire and other hazards. It has operations in Arizona, California, Florida, Georgia, Illinois, Michigan, Nevada, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia. The Company offers standard, non-standard, and preferred private passenger automobile insurance in approximately 10 states. MERCURY GENERAL CORPORATION (NYSE:MCY) Recent Trading Information
MERCURY GENERAL CORPORATION (NYSE:MCY) closed its last trading session down -1.32 at 59.67 with 157,488 shares trading hands.
