MetLife has replaced its existing revolving credit agreement with a new facility providing up to $4 billion of borrowing and letter-of-credit capacity. The facility can be expanded to as much as $5.5 billion, subject to the agreement’s conditions, and is available for general corporate purposes.
The agreement establishes access to credit; the announcement does not specify that MetLife has drawn funds or issued letters of credit under it.
Key details
- Borrowing capacity: MetLife and its wholly owned subsidiary MetLife Funding can borrow or obtain letters of credit up to a combined $4 billion from the participating lenders.
- Potential increase: The available amount may be raised to a maximum of $5.5 billion, provided no default is continuing.
- Repayment dates: Borrowings must be repaid by November 7, 2031. Letters of credit still outstanding on that date may remain in place until no later than November 7, 2032.
- Use of funds: The facility can support MetLife’s general corporate purposes.
- Covenants and defaults: The agreement includes customary representations and covenants. If a default occurs and is not waived or remedied, lenders may be able to accelerate repayment.
- Replacement of prior agreement: The new agreement amends and restates MetLife’s 2023 credit agreement in full. The announcement does not provide a comparison with the prior facility’s size or terms.
Plain-English implications
The facility gives MetLife access to a substantial source of potential liquidity, but its full committed amount is not the same as debt already borrowed. The announcement does not state how much, if any, MetLife has drawn.