Voya 2013 Annual Report Download - page 349

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Effective October 30, 2013, SLDI completed a $1.125 billion letter of credit facility which replaced the $825.0
letter of credit facility maturing December 31, 2013 and the $300.0 letter of credit facility which matured
June 30, 2013. The new facility provides $1.125 billion of capacity on a committed basis until October 29, 2020
and supports the Individual Reinsurance business.
Effective December 31, 2013, SLDI and ING U.S., Inc. completed a $250.0 letter of credit facility with a third-
party bank which matures December 29, 2023 and also supports the Individual Reinsurance business.
Effective January 1, 2014, the reinsurance agreements with Whisperingwind III were novated to Roaring River
IV, a wholly owned reinsurance subsidiary of the Company, which completed a transaction with a third-party
bank to provide up to $565.0 of AG38 reserve financing through a trust note which matures December 31, 2028.
The initial amount of the trust note issued on January 1, 2014 is $297.0. The trust note replaces $330.0 of letters
of credit associated with the Whisperingwind III reinsurance agreements which were cancelled in January 2014.
Effective January 15, 2014, Langhorne I, LLC (“Langhorne I”), a wholly owned reinsurance subsidiary of the
Company, completed a financing arrangement with a third-party trust to provide up to $500.0 of trust note
collateral funding. The financing arrangement is designed to manage reserve and capital requirements in
connection with the stable value business and matures on January 15, 2019. No trust notes were being utilized as
of financing arrangement inception.
Effective January 24, 2014, SLDI entered into a letter of credit facility agreement with a third-party bank
providing up to $150.0 of committed capacity until January 24, 2018 which supports reserves on an affiliated
reinsurance agreement in connection with a portion of its deferred annuity business.
Senior Unsecured Credit Facility
On April 20, 2012, the Company entered into a $5.0 billion unsecured Senior Credit Facility (“Senior Unsecured
Credit Facility”) with a syndicate of banks, replacing financing that was either internally funded or guaranteed by
ING V. The Senior Unsecured Credit Facility is guaranteed by Lion Holdings, a wholly owned subsidiary of the
Company. As part of the Senior Unsecured Credit Facility, the Company entered into a Revolving Credit
Agreement and a $1.5 billion syndicated Term Loan Agreement (“Term Loan Agreement”).
The Revolving Credit Agreement includes a $3.5 billion LOC facility with a revolving credit borrowing sublimit
of $1.5 billion. Under the terms of the Revolving Credit Agreement, the revolving credit borrowing sublimit
would be reduced by 50% of any debt securities issued by the Company, to a minimum of $750.0. Additionally,
the terms required ING U.S., Inc. to maintain liquidity of $500.0 at all times. The total amount of LOCs and
revolving credit borrowings outstanding at any time may not exceed $3.5 billion. The Revolving Credit
Agreement expires on April 20, 2015 at which time any outstanding borrowings are due. The Company must
collateralize any LOCs outstanding as of the expiration date of the facility. As of December 31, 2013,
$2.1 billion of LOCs were outstanding under the Revolving Credit Agreement. Of this total, LOCs issued by ING
Bank amount to $150.3. The costs of the Revolving Credit Agreement vary depending on the current credit rating
of the Company. Currently, the Company pays interest equal to LIBOR plus 200 bps on direct borrowings and an
issuance fee of 200 bps for LOCs.
As of December 31, 2013, there were no amounts outstanding as revolving credit borrowings. On July 17, 2012,
the Company repaid $500.0 of revolving credit borrowings with proceeds from the issuance of the 2022 Notes.
As a result of the issuance of the 2018 Notes and the 2022 Notes, the revolving credit borrowing sublimit was
reduced to $750.0. As a member of the syndicate which entered into the Revolving Credit Agreement, ING Bank
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