MetLife 2007 Annual Report Download - page 143

Credit and Committed Facilities and Letters of Credit
Credit Facilities. The Company maintains committed and unsecured credit facilities aggregating $4.0 billion as of December 31, 2007.
When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements. The facilities can be used
for general corporate purposes and at December 31, 2007, $3.0 billion of the facilities also served as back-up lines of credit for the
Company’s commercial paper programs. Information on these credit facilities as of December 31, 2007 is as follows:
Borrower(s) Expiration Capacity
Letter of
Credit
Issuances Drawdowns Unused Commitments
(In millions)
MetLife, Inc. and MetLife Funding, Inc. . . . . . . . . . . . . . . . . . . . . . . June 2012 (1) $3,000 $1,532 $— $1,468
MetLife Bank, N.A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 2008 (2) 200 — — 200
ReinsuranceGroupofAmerica,Incorporated...................May2008 30 — 30 —
Reinsurance Group of America, Incorporated . . . . . . . . . . . . . . . . . . . September 2012(3) 750 406 — 344
Reinsurance Group of America, Incorporated . . . . . . . . . . . . . . . . . . . March 2011 44 — — 44
Total ........................................... $4,024 $1,938 $30 $2,056
(1) In June 2007, the Holding Company and MetLife Funding, Inc. entered into a $3.0 billion credit agreement with various financial
institutions, the proceeds of which are available to be used for general corporate purposes, to support their commercial paper programs
and for the issuance of letters of credit. All borrowings under the credit agreement must be repaid by June 2012, except that letters of
credit outstanding upon termination may remain outstanding until June 2013. The borrowers and the lenders under this facility may agree
to extend the term of all or part of the facility to no later than June 2014, except that letters of credit outstanding upon termination may
remain outstanding until June 2015. The $1.5 billion credit agreement, with an April 2009 expiration, and the $1.5 billion credit agreement,
with an April 2010 expiration, were both terminated in June 2007 and replaced by the aforementioned facility.
(2) In July 2007, the facility was extended for one year to July 2008.
(3) In September 2007, RGA and certain of its subsidiaries entered into a credit agreement with various financial institutions. Under the credit
agreement, RGA may borrow and obtain letters of credit for general corporate purposes for its own account or for the account of its
subsidiaries with an overall credit facility amount of up to $750 million. The credit agreement replaced a former credit agreement in the
amount of $600 million which was scheduled to expire on September 29, 2010.
Committed Facilities. Information on committed facilities as of December 31, 2007 is as follows:
Account Party/Borrower(s) Expiration Capacity Drawdowns
Letter of
Credit
Issuances Unused Commitments Maturity (Years)
(In millions)
Exeter Reassurance Company Ltd., MetLife, Inc., &
Missouri Re . . . . . . . . . . . . . . . . . . . . . . . . . June 2016 (1) $ 500 $ — $ 490 $ 10 8
Exeter Reassurance Company Ltd. . . . . . . . . . . . December 2027 (2) 650 — 410 240 20
Timberlake Financial L.L.C. . . . . . . . . . . . . . . . . June 2036 (3) 1,000 850 — 150 29
MetLife Reinsurance Company of South Carolina &
MetLife, Inc. . . . . . . . . . . . . . . . . . . . . . . . . June 2037 (4) 3,500 2,382 — 1,118 30
MetLife Reinsurance Company of Vermont &
MetLife, Inc. . . . . . . . . . . . . . . . . . . . . . . . . December 2037(2),(5) 2,896 — 1,235 1,661 30
Total ............................. $8,546 $3,232 $2,135 $3,179
(1) Letters of credit and replacements or renewals thereof issued under this facility of $280 million, $10 million and $200 million are set to
expire no later than December 2015, March 2016 and June 2016, respectively.
(2) The Holding Company is a guarantor under this agreement.
(3) As described in Note 11, RGA may, at its option, offer up to $150 million of additional notes under this facility in the future.
(4) In May 2007, MetLife Reinsurance Company of South Carolina (“MRSC”), a wholly-owned subsidiary of the Company, terminated the
$2.0 billion amended and restated five-year letter of credit and reimbursement agreement entered into among the Holding Company,
MRSC and various financial institutions on April 25, 2005. In its place, the Company entered into a 30-year collateral financing
arrangement as described in Note 11, which may be extended by agreement of the Company and the financial institution on each
anniversary of the closing of the facility for an additional one-year period. As of December 31, 2007, $2.4 billion had been drawn upon
under the collateral financing arrangement.
(5) In December 2007, Exeter Reassurance Company Ltd. (“Exeter”) terminated four letters of credit, with expirations from March 2025
through December 2026, that were issued under a letter of credit facility with an unaffiliated financial institution in an aggregate amount of
$1.7 billion. The letters of credit had served as collateral for Exeter’s obligations under a reinsurance agreement that was recaptured by
MLI-USA in December 2007. MLI-USA immediately thereafter entered into a new reinsurance agreement with MetLife Reinsurance
Company of Vermont (“MRV”). To collateralize its reinsurance obligations, MRV and the Holding Company entered into a 30-year,
$2.9 billion letter of credit facility with an unaffiliated financial institution.
Letters of Credit. At December 31, 2007, the Company had outstanding $4.2 billion in letters of credit, all of which are associated with
the aforementioned credit facilities, from various financial institutions, of which $2.1 billion and $1.9 billion were part of committed and
F-47MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)