Enstar Group Ltd. entered into an unsecured $600 million letter of credit facility agreement following a transaction with Maiden Holdings Ltd.
As the borrower, subsidiary Cavello Bay Reinsurance Ltd. will draw $445 million of letters of credit and post them as collateral in connection with the adverse development cover provided to Maiden Reinsurance Ltd.
Cavello Bay can increase the commitments in an aggregate amount up to $75 million. Unless terminated earlier in accordance with its terms, the agreement will expire one year from its effective date. Cavello Bay can request up to three one-year extensions.
National Australia Bank Ltd., London branch, served as administrative agent and issuing bank. National Australia Bank and The Bank of Nova Scotia acted as joint book runners, joint lead arrangers and syndication agents.