Converium Seeks to Arrange a US$ 800 Million Syndicated Letter of Credit Facility Via ABN AMRO, Barclays Capital and Commerzbank.Business Editors ZUG Zug (ts  k), canton (1993 pop. 87,100), 93 sq mi (241 sq km), N central Switzerland. , Switzerland--(BUSINESS WIRE)--April 16, 2003 Converium seeks to arrange a US$ 800 million syndicated letter of credit facility via ABN AMRO, Barclays Capital and Commerzbank. Converium Ltd has mandated ABN AMRO, Barclays Capital and Commerzbank as lead arrangers and book runners for a US$ 800 million proposed syndicated letter of credit facility. The proposed transaction is a debut facility for Converium in the international syndicated loan market. The suggested facility has a tenor of 3 years and will be available to Converium Ltd and its nominated subsidiaries, subject to a guarantee by Converium Ltd. It will be used primarily to collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. third party claims related to the underwriting business of the Group in order to support the expected profitable growth of Converium. As per December 31, 2002, Converium reported outstanding letters of credit of US$ 372 million to secure certain assumed reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. contracts. Converium intends to replace current letters of credit lines by the proposed facility. Converium is an independent top-ten reinsurance group. Converium Holding Ltd was listed on the SWX Swiss Exchange SWX Swiss Exchange An all-electronic securities exchange formed from the 1995 merger of exchanges in Geneva, Basel, and Zurich. The exchange offers trading in equity securities, investment funds, exchange-traded funds, bonds, Eurobonds, and options. and the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. on December 11, 2001. Converium's 100% flotation was earmarked as the largest reinsurance IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ever worldwide and the largest corporate IPO in Switzerland since 1998. Today the Group ranks among the top ten professional reinsurers and employs more than 800 people in 22 offices around the globe. Converium has an "A" rating (stable outlook) both from Standard & Poor's and A.M. Best Company. Converium is organized around four business segments consisting of three non-life operations, Converium Zurich, Converium North America and Converium Cologne, as well as Converium Life. |
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