Arch Capital Expands Credit Facility by $170 Million

Arch Capital Group Ltd. (NASDAQ:ACGL), a Bermuda-based insurer, has increased its letter of credit facility by $170 million, according to a recent SEC filing. The amendment to the credit agreement, executed on October 30, 2024, with Lloyds (LON:LLOY) Bank Corporate Markets plc, raises the available credit to $700 million.

The expansion of the facility represents a significant increase from the previous amount of $530 million. As of October 31, 2024, the full $700 million of letters of credit had been issued under the facility. This move could provide Arch Capital with additional financial flexibility.

The credit facility amendment, referred to as Amendment No. 4, follows a series of previous amendments to the original Letter of Credit Facility Agreement dated November 3, 2020. The details of the amendment were outlined in an 8-K filing with the SEC.

Arch Capital's decision to expand its credit facility comes as the company continues to navigate the complex financial landscape of the insurance industry. The increase in the facility size may be used to support the company's ongoing operations, strategic initiatives, or other corporate purposes.

For more details on the terms of the credit agreement, reference can be made to the full text of the amended agreement, which is included as an exhibit in the 8-K filing. The filing also notes that certain parts of the exhibit have been omitted in accordance with SEC regulations, but Arch Capital has committed to providing supplemental information to the SEC upon request.

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