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Travelers secures $1B credit facility

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Travelers secures $1B credit facility

Travelers Cos. Inc. entered into a $1.0 billion five-year revolving credit facility, which replaced the company's previous five-year agreement that was terminated June 4.

The company has the option to upsize the facility to as much as $1.5 billion. The interest rates applicable to loans under the agreement are generally based on a base rate or the eurodollar rate plus a specified margin.

Borrowings may be used for general corporate purposes of the company and its subsidiaries.

Under the agreement, Travelers must maintain an excess of consolidated net worth over goodwill and other intangible assets of not less than $14.24 billion minus 70.0% of actual stock repurchases made after March 31, up to a maximum deduction of $1.75 billion.

U.S. Bank NA, Citibank NA, JPMorgan Chase Bank NA, Merrill Lynch Pierce Fenner & Smith Inc. and Wells Fargo Securities LLC are joint lead arrangers and joint bookrunners. U.S. Bank also serves as administrative agent.

Bank of America NA, Citibank, JPMorgan Chase Bank and Wells Fargo Bank NA are co-syndication agents.