2004-9-28 ACE Limited (NYSE: ACE) 8-K

http://www.sec.gov/Archives/edgar/data/896159/000119312504162936/0001193125-04-1629...
-----BEGIN PRIVACY-ENHANCED MESSAGE----Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UuqcJ3Q92Gj+QrhnVO2Vde8VGWaXwtsTMnLGxKjFYXOkmwD/VvJTyg6AngdfSGqj bTvASV+WslOKI58T91o/xQ== <SEC-DOCUMENT>0001193125-04-162936.txt : 20040928 <SEC-HEADER>0001193125-04-162936.hdr.sgml : 20040928 <ACCEPTANCE-DATETIME>20040928123401 ACCESSION NUMBER: 0001193125-04-162936 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040922 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Termination of a Material Definitive Agreement ITEM INFORMATION: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant FILED AS OF DATE: 20040928 DATE AS OF CHANGE: 20040928 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL INDEX KEY: STANDARD INDUSTRIAL CLASSIFICATION: IRS NUMBER: STATE OF INCORPORATION: FISCAL YEAR END: FILING VALUES: FORM TYPE: SEC ACT: SEC FILE NUMBER: FILM NUMBER: BUSINESS ADDRESS: STREET 1: STREET 2: CITY: STATE: ZIP: BUSINESS PHONE: MAIL ADDRESS: STREET 1: CITY: STATE: ZIP: </SEC-HEADER> <DOCUMENT> <TYPE>8-K <SEQUENCE>1 <FILENAME>d8k.htm <DESCRIPTION>FORM 8-K <TEXT> <HTML><HEAD> <TITLE>Form 8-K</TITLE> </HEAD> <BODY BGCOLOR="WHITE"> 8-K 1934 Act 001-11778 041049067 ACE BLDG 30 WOODBOURNE AVE HAMILTON HM 08 BERMU D0 00000 8092955200 P O BOX HM 1015 HAMITON BERMUDA D0 00000 ACE LTD 0000896159 FIRE, MARINE & CASUALTY INSURANCE [6331] 000000000 D0 1231
<HR SIZE="3" NOSHADE COLOR="#000000" ALIGN="left"> UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 <HR WIDTH="21%" SIZE="1" NOSHADE COLOR="#000000"> SIZE="1"> FORM 8-K </FO SIZE="1" NOSHADE COLOR="#000000"> Current Re STYLE="margin-top:0px;margin-bottom:0px"> Pursuant To Section 13 or 15 (d) of the </F STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">Securities Exchange Act of 1934 STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">Date of Report (Date of earliest event reported) September 22, 2004 <HR WIDTH="21%" SIZE="1" NOSHADE COLOR="#000000"> ACE LIMITED (Exact name of registrant as specified in its charter) <HR WIDTH="21%" SIZE="1" NOSHADE COLOR="#000000"> <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">
<TR> <TD WIDTH="33%"></TD> <TD VALIGN="bottom" WIDTH="2%"></TD> <TD WIDTH="31%"></TD> <TD VALIGN="bottom" WIDTH="2%"></TD> <TD WIDTH="32%"></TD></TR> <TR> <TD VALIGN="top" ALIGN="center">Cayman Islands</TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="top" ALIGN="center">1-11778</TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="top" ALIGN="center">98-0091805</TD></TR> <TR> <TD VALIGN="top" ALIGN="center"> (State or other jurisdiction of Incorporation)</TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="top" ALIGN="center">(Commission File Number)</TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="top" ALIGN="center"> (I.R.S. Employer Identification No.)</TD></TR> </TABLE> ACE Global Headquarters 17 Woodbourne Avenue Hamilton HM 08 Bermuda (Address of principal executive offices) </ STYLE="margin-top:0px;margin-bottom:0px"> Registrants telephone number, including a Not applicable </ STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">(Former name or former address, if changed since last report) <F SIZE="1"> <HR WIDTH="21%" SIZE="1" NOSHADE COLOR="#000000"> see General Instruction A.2. below): <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="4%" VALIGN="top" ALIGN="left">¨</TD> <TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="4%" VALIGN="top" ALIGN="left">¨</TD> <TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="4%" VALIGN="top" ALIGN="left">¨</TD> <TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="4%" VALIGN="top" ALIGN="left">¨</TD> <TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <HR SIZE="3" NOSHADE COLOR="#000000" ALIGN="left"> <HR SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="8%" VALIGN="top" ALIGN="left">Item 1.01</TD> <TD WIDTH="1%" VALIGN="top"> </TD> <TD ALIGN="left" VALIGN="top">Entry into Material Definitive Agreements. </TD></TR></TABLE> &nb STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">On September 22, 2004, ACE Limited, ACE Bermuda Insurance Ltd, ACE Tempest Life Reinsurance Ltd., and ACE Tempest Reinsurance (collectively the Account Parties), entered into two syndicated letter of credit reimbursement agreements (the LC Agreements) with the banks named therein, including various issuing banks, and Wach Association (Wachovia) as administrative agent. One LC Agreement permits the issuance of up to $850,000,000 of letters of credit on an unsecured basis. The other LC Agreement permits the issuance of up to $500 credit on a secured basis, with the collateral consisting of various investment securities owned by one or more of the Account Parties. The LC Agreements replaced the following four letter of credit facilities (which in a $1.4 billion of letters of credit): (i) a Reimbursement Agreement, dated as of September 25, 2003, among the Account Parties, the banks and other lenders named therein and Wachovia, as issuing bank and as administrative a $500,000,000 secured letter of credit facility for the benefit of the Account Parties, which would have expired on September 26, 2006, (ii) a Reimbursement Agreement, dated as of September 25, 2003, among the Account Part lenders named therein and Wachovia, as issuing bank and as administrative agent, providing for a $500,000,000 unsecured letter of credit facility for the benefit of the Account Parties, which would have expired on Septemb $200,000,000 Insurance Letters of Credit Master Agreement, dated April 20, 1994, between ACE Tempest Reinsurance Ltd. (then known as Tempest Reinsurance Company Limited) and Citibank, N.A., and (iv) a $200,000,000 Letters of Credit Agreement, dated November 20, 2003, with Barclays Bank PLC relating to the Lloyds Dollar Trust Funds of Syndicate 2488, which would have expired on October 29, 2004. Upon the effectiveness of the L outstanding letters of credit issued under the replaced facilities were deemed to have been issued under the unsecured LC Agreement and the replaced facilities terminated. Letters of credit issued under these agreements are used to satisfy the terms of certain insuran
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that require providing letters of credit to clients or to satisfy certain U.S. regulatory trust fund requirements. The LC Agreements expire September 22, 2007. Each Account Party guarantees the obligations of other Accoun Agreements. Under the secured LC Agreement, the Account Parties pay a commitment fee of 0.10% per annum and a letter of credit fee on the stated amount of each letter of credit at 0.30% per annum. Under the unsecured LC A Parties pay a commitment fee ranging from 0.06% to 0.15% per annum (depending on ratings) and a letter of credit fee on the stated amount of each letter of credit ranging from 0.30% to 0.625% (depending on ratings and on letter of credit is an affiliate). In addition to the foregoing fees, the Account Parties pay customary upfront, arrangement and administration fees under each LC Agreement as well as fronting fees and customary administr of each letter of credit. Interest is payable on any unreimbursed drawing under either LC Agreement at 2% over the greater of (i) the federal funds rate plus 0.5% or (ii) the prime rate. The terms, conditions and covenants of the new reimbursement agreements are substantially simila were replaced, except that the net worth covenant was updated to conform to the test currently in place under our revolving credit facilities. These agreements contain customary covenants, including covenants limiting lie and mergers. Most of these restrictions are subject to certain minimum thresholds and exceptions. The agreements also contain financial covenants that require: <FON
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="4%"> </TD> <TD WIDTH="4%" VALIGN="top" ALIGN="left">(i)</TD> <TD ALIGN="left" VALIGN="top">maintenance of a minimum consolidated net worth of not less than $6.0 billion (subject to a reset provision on the last day of each fiscal year) plus 25 income since December 31, 2003, plus 50 percent of net proceeds of any issuance of equity interests subsequent to December 31, 2003; and </TD></TR></TABLE> <TR> <TD WIDTH="4%"> </TD> <TD WIDTH="4%" VALIGN="top" ALIGN="left">(ii)</TD> <TD ALIGN="left" VALIGN="top">maintenance of a maximum debt to total capitalization ratio of not greater than 0.35 to 1. Under this covenant, debt does not include trust preferred sec except where the ratio of the sum of trust preferred securities and mezzanine equity to total capitalization is greater than 15 percent. In this circumstance, the amount greater than 15 percent would be included in the de ratio. </TD></TR></TABLE> In addition, the obligations of the banks to issue letters of credit may be terminated, and the obligations of the Company and the other Account Parties thereunder may be accelerated, upon an event of default. Such events include (sub thresholds and grace periods) payment defaults, covenant defaults, material inaccuracy of representations and warranties, bankruptcy and insolvency proceedings, change of control, cross-defaults under other agreements and <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="8%" VALIGN="top" ALIGN="left">Item 1.02</TD> <TD WIDTH="1%" VALIGN="top"> </TD> <TD ALIGN="left" VALIGN="top">Termination of a Material Definitive Agreement </TD></TR></TABLE> See Item 1.01 above which is hereby incorporated herein by reference. & <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR> <TD WIDTH="8%" VALIGN="top" ALIGN="left">Item 2.03</TD> <TD WIDTH="1%" VALIGN="top"> </TD> <TD ALIGN="left" VALIGN="top">Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. </TD></TR> STYLE="margin-top:0px;margin-bottom:-6px"> See Item 1.01 above which is hereby incorporated herein by refer <HR SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER"> SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf duly authorized. <DIV ALIGN="right"> <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0"> <TR> <TD WIDTH="7%"></TD> <TD VALIGN="bottom" WIDTH="2%"></TD> <TD WIDTH="91%"></TD></TR> <TR> <TD VALIGN="top" COLSPAN="3">ACE LIMITED</TD></TR> <TR> <TD HEIGHT="16"></TD> <TD HEIGHT="16" COLSPAN="2"></TD></TR> <TR> <TD VALIGN="top">By:</TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="bottom"> /S/ PHILIP V. BANCROFT <HR SIZE="1" NOSHADE COLOR="#000000"></TD></TR> <TR> <TD VALIGN="top"> </TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="bottom" ALIGN="center">Philip V. Bancroft</TD></TR> <TR> <TD VALIGN="top"> </TD> <TD VALIGN="bottom"> </TD> <TD VALIGN="bottom" ALIGN="center">Chief Financial Officer</TD></TR> </TABLE></DIV> DATE: September 27, 2004 </BODY></HTML> </TEXT> </DOCUMENT> </SEC-DOCUMENT> -----END PRIVACY-ENHANCED MESSAGE-----
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2004-9-28 ACE Limited (NYSE: ACE) 8-K

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http://www.sec.gov/Archives/edgar/data/896159/000119312504162936/0001193125-04-1629...

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