Employers Holdings, Inc. Enters Material Agreement

TL;DR

Employers Holdings, Inc. just signed a big deal, creating new financial obligations.

AI Summary

On May 28, 2024, Employers Holdings, Inc. entered into a material definitive agreement. This filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. The filing includes financial statements and exhibits related to these events.

Why It Matters

This filing signals a significant new financial commitment or agreement for Employers Holdings, Inc., which could impact its financial obligations and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating new financial obligations can introduce financial risks and uncertainties for a company.

Key Players & Entities

• Employers Holdings, Inc. (company) — Registrant
• May 28, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share EIG New York Stock
• $25.0 m — er. The Credit Agreement provides for a $25.0 million, unsecured, three-year revolving
• $800 million — hensive income or loss, of no less than $800 million; and (ii) a debt to total capitalizatio
• $10.0 m — lity up to a maximum facility amount of $10.0 million, subject to the consent of the le

Filing Documents

• eig-20240528.htm (8-K) — 32KB
• ex101_52824creditagreement.htm (EX-10.1) — 1813KB
• 0001379041-24-000129.txt ( ) — 2253KB
• eig-20240528.xsd (EX-101.SCH) — 2KB
• eig-20240528_def.xml (EX-101.DEF) — 6KB
• eig-20240528_lab.xml (EX-101.LAB) — 25KB
• eig-20240528_pre.xml (EX-101.PRE) — 17KB
• eig-20240528_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On May 28, 2024, Employers Holdings, Inc. ("EHI") entered into a Credit Agreement (the "Credit Agreement") with a Wells Fargo, as both administrative agent and issuing lender. The Credit Agreement provides for a $25.0 million, unsecured, three-year revolving credit facility and is guaranteed by certain of EHI's wholly owned subsidiaries. As of the closing, the subsidiary guarantors are Employers Group, Inc. and Cerity Group, Inc. The interest rates applicable to loans under the Credit Agreement are generally based on either: (i) a base rate, defined as the higher of the Prime Rate, the Federal Funds Rate plus 1.25% and the Adjusted Term SOFR Rate for a one-month tenor plus 1.75%, or (ii) an Adjusted Term SOFR Rate, defined as the applicable Adjusted Term SOFR Rate plus 1.75%. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries. The Credit Agreement contains covenants that require EHI and its consolidated subsidiaries to maintain: (i) a minimum consolidated net worth, defined as EHI's total stockholders' equity excluding any accumulated other comprehensive income or loss, of no less than $800 million; and (ii) a debt to total capitalization ratio of no more than 35%, in each case as determined in accordance with the Credit Agreement. In addition, the Credit Agreement contains certain customary representations, warranties and affirmative and negative covenants, including covenants that, among other things, limit the ability of EHI and its subsidiaries to incur certain types of liens, to incur indebtedness, to consummate certain mergers or consolidations, and to use proceeds of borrowings under the Credit Agreement for other than permitted uses, as well as certain customary events of default, including the occurrence of a change of control. These covenants are subject to various important exceptions and qualifications. Unless terminat

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. Exhibit No. Description 10.1 Credit Agreement, dated as of May 28, 2024, by and among Employers Holdings, Inc., as Borrower, the lenders referred to therein, and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender 104 Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EMPLOYERS HOLDINGS, INC. Dated: May 29, 2024 /s/ Michael S. Paquette Michael S. Paquette Executive Vice President, Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR