XL Group Cancels Commitments Under Bridge Facility

(RTTNews) - XL Group Plc. (XL) has cancelled the commitments under the Bridge Facility effective as of April 8, 2015.

XL Group and Catlin Group Limited (CGL.L) announced on 9 January 2015 that they had agreed to the terms of a recommended cash and share acquisition of the entire issued and to be issued share capital of Catlin by XL.

The Announcement provided that XL anticipated to fund the Acquisition through cash on hand and the issuance of subordinated notes. The Announcement also stated that XL was able to rely on 1.6 billion pounds of debt to be provided under a bridge facility entered into by XLIT Ltd., a wholly-owned subsidiary of XL, on January 9, 2015 and arranged by Morgan Stanley Senior Funding, Inc. and Goldman Sachs Bank USA for the purposes of discharging the cash component of the Acquisition consideration.

On 30 March 2015, XL, through XLIT Ltd., completed the sale of $500 million aggregate principal amount of its 4.450% subordinated notes due 2025 and $500 million aggregate principal amount of its 5.500% subordinated notes due 2045. XL received net proceeds from the issuance of the Subordinated Notes of about $980.6 million, after deducting underwriting discounts and estimated offering expenses.

XL has deposited a sufficient amount of cash and cash equivalents, comprised of the Net Subordinated Note Proceeds and cash and cash equivalents from other sources, in escrow to discharge the cash consideration payable to Catlin shareholders in respect of the Acquisition. Accordingly, and pursuant to the terms of the Bridge Facility, XL has cancelled the commitments under the Bridge Facility effective as of April 8, 2015.