STATE AUTO FINANCIAL CORPORATION (NASDAQ:STFC) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On May 17, 2018, State Auto Property& Casualty Insurance Company ("SAPC"), a wholly owned subsidiary of State Auto Financial Corporation (the "Company"), received a loan (the "FHLB Loan") from the Federal Home Loan Bank of Cincinnati ("FHLB"). The FHLB Loan is a 15-year term loan in the principal amount of $85,000,000 and provides for interest-only payments during its term, with principal due in full at maturity. The prepayment fee is equal to to the present value of 50% of the lost cash flow and the prepayment fee is due and payable on the date the advance is prepaid. The interest rate is fixed over the term of the loan at 3.96%. The FHLB Loan is fully secured by a pledge of specific investment securities of SAPC and replaces an existing loan with FHLB, as further described in Item 2.03.
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Item 2.03 |
Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement. |
On May 17, 2018, SAPC retired a 20-year term loan from the FHLB in the principal amount of $85,000,000. The loan provided for interest-only payments during its term, with principal due in full at maturity. The interest rate was fixed over the term of the loan at 5.03%. The prepayment fee for retiring the loan prior to maturity was equal to the present value of 50% of the lost cash flow to the Bank. Prepayment fees were due and payable on the date the loan was retired.
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Section9. |
Financial Statements and Exhibits |
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Item 2.03. |
Financial Statements and Exhibits |
EXHIBIT INDEX
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Exhibit No. |
Description of Exhibit |
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Advance dated as of May 17, 2018, between State Auto Property & Casualty and Federal Home Loan Bank of Cincinnati. |
State Auto Financial CORP ExhibitEX-10.01 2 exhibit.htm EXHIBIT 10.01 Exhibit Exhibit 10.01^FHLBCINCINNATI APPLICATION FOR ADVANCEEmail: [email protected]: 800-828-4191 Fax: 513-852-5747D.D.A. # 389001 Date: 05/17/2018Pursuant to the BLANKET SECURITY AGREEMENT (“Agreement”) and the RESOLUTION FOR ADVANCES (“Resolution”) currently on file with the Federal Home Loan Bank of Cincinnati (“Bank”),…To view the full exhibit click here
About STATE AUTO FINANCIAL CORPORATION (NASDAQ:STFC)
State Auto Financial Corporation (State Auto Financial) is a property and casualty insurance holding company. The Company is engaged in writing personal, business and specialty insurance. Its segments include personal insurance, business insurance, specialty insurance and investment operations. Its personal insurance, business insurance and specialty insurance are known as insurance segments of the Company. It writes standard insurance covering personal exposures to individuals in the personal insurance segment. The Company writes insurance covering small-to-medium sized commercial exposures in the business insurance segment. The specialty insurance segment offers commercial coverages requiring product underwriting, claims handling and/or risk management services through a distribution channel of retail agents and wholesale brokers, which include program administrators and other sources. Its investment portfolio is managed by its subsidiary, Stateco Financial Services, Inc.
