GoshawK Insurance Holdings has reached an agreement with its lending banks with regards to its US$65m medium term loan facility and its £20m letter of credit, both of which were in breach after the announcement of material reserve strengthening by Lloyd's Syndicate 102 earlier this year.
GoshawK said it had made the first repayment of principal interest on the term facility, which now has a balance of $42m. Further payments will be made in December 2004, 05, 06 and 07.
It said the letter of credit facility formed part of GoshawK's funds at Lloyd's and was available to meet losses in Syndicate 102. The maximum borrowing permitted on the letter of credit is £15m said GoshawK.
As part of the arrangement, GoshawK has issued "A" warrants to its banks for 5,277,722 ordinary shares, making up some 3% of the shares in issue.
