HCC INCREASES ITS REVOLVING LOAN
FACILITY
HOUSTON (December 19, 2006) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC)
announced today that
the Company had reached an agreement with a group of banks led by Wells
Fargo to increase its revolving loan facility by $100 million, bringing the
total facility to $300 million. The credit facility includes Wachovia Bank
as syndication agent, Citibank, Royal Bank of Scotland, Amegy Bank and the
Bank of New York.
Pursuant to the terms of the agreement, the Company can borrow up to $25
million in addition to what is currently borrowed for working capital
purposes. However, the full unfunded amount of the facility would be
available to pay any potential convertible note conversion or put. In
addition the Company was granted certain waivers until January 31, 2007
relating to its failure to file quarterly financial reports.
Commenting on this change, Frank J. Bramanti, Chief Executive Officer, said,
“This additional borrowing capacity coupled with our existing available cash
gives us ample liquidity to respond to any potential issue arising from our
convertible debt securities, including full payment if necessary.”
Headquartered in Houston, Texas, HCC is a leading international specialty
insurance group with offices across the United States and in Bermuda, Spain
and the United Kingdom. HCC has assets exceeding $7.5 billion, shareholders’
equity of almost $2.0 billion and is rated AA (Very Strong) by Standard &
Poor’s and A+ (Superior) by A. M. Best Company.
For more information, visit our website at
www.hcc.com.
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Contact:
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L. Byron Way, Vice
President
HCC Insurance Holdings, Inc.
Telephone: (713) 690-7300
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Forward-looking statements contained in this press
release are made under “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995 and involve a number of
risks and uncertainties. The types of risks and uncertainties which
may affect the Company are set forth in its periodic reports filed
with the Securities and Exchange Commission. In addition, the
completion of the independent review of the Company's option
granting practices and any remedial decisions instituted by the
Board of Directors might have a material affect on the risks and
uncertainties of the Company's future results. |
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