Voya 2013 Annual Report Download - page 471

time before such termination. Prior to such termination, in connection with this guarantee, the
Company paid ING V 10 basis points on the outstanding balance of the commercial paper program, or
approximately $20,000 during 2013. ING Capital Markets LLC, a wholly owned subsidiary of ING
Bank, acted as a dealer on the facility.
• ING V provided a guarantee to ING Bank of the Company’s obligations with respect to the
$30.1 million in LOCs outstanding as of December 31, 2012 under a bi-lateral credit facility between
the Company and ING Bank. In January 2013, $15.1 million in LOCs were cancelled. In January 2014,
the remaining $15.0 million LOC was cancelled, and thus the ING V guarantee was terminated. No
fees were paid by the Company to ING V with respect to this guarantee.
• ING V was previously the guarantor of the obligations of Lion Custom Investments LLC, a wholly
owned subsidiary of the Company, under its ISDA master agreements with various unaffiliated
counterparties. No fees were paid with respect to these guarantees. These guarantees were all
terminated on or before May 14, 2013.
• ING Financial Products Company (“FPC”), a wholly owned subsidiary of Voya Financial, Inc., has
sold protection under certain credit default swap derivative contracts that were previously supported by
a guarantee provided by ING V and now NN Group. Between September and December 2013, the
guarantee provided by ING V on $1.0 billion notional of sold protection was replaced with guarantees
provided by Voya Financial, Inc. The Company purchased protection under one credit default swap
derivative contract that is still supported by the NN Group guarantee. The maximum potential exposure
to NN Group under the guaranteed swap is limited to swap premiums to be paid, or approximately
$43.5 million. The swap guaranteed by NN Group, is scheduled to terminate in or prior to 2018. No
fees have been or are paid with respect to these guarantees.
Letter of Credit Facilities
From time to time, we have entered into LOC facilities with ING Bank to provide for statutorily required
reserves at our captive reinsurance subsidiaries. The terms of these LOC facilities, including fee provisions, are
consistent with terms that would be entered into between arm’s-length unaffiliated parties.
On April 20, 2012, the Company entered into a Senior Unsecured Credit Facility, comprised of a Revolving
Credit Agreement and a Term Loan Agreement, with a syndicate of banks, including ING Bank, which replaced
financing that was either internally funded or guaranteed by ING V. (See “Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Senior Unsecured
Credit Facility”.) ING Bank committed up to $250.0 million in financing as a member of the syndicate which
entered into the Senior Unsecured Credit Facility. The Revolving Credit Agreement was amended and restated as
of February 14, 2014 and ING Bank remains a lender under the amended and restated Revolving Credit
Agreement and has committed up to $150 million as a syndicate member. ING Bank acted as Joint Lead
Arranger, Joint Book Manager and Documentation Agent for the amended and restated Revolving Credit
Agreement and received various fees of approximately $0.7 million related to its participation in the amended
and restated Revolving Credit Agreement.
As of December 31, 2012, $30.1 million of LOCs were outstanding under an existing bi-lateral facility with
ING Bank. In January 2013, $15.1 million in LOCs were cancelled. The remaining $15.0 million LOC and,
accordingly, the facility itself, was cancelled in January 2014.
In December 2011, SLDI entered into a contingent capital LOC facility with ING Bank in the amount of
$1.5 billion. The contingent capital LOC was used to support the reinsurance obligations of SLDI to another of
our wholly owned subsidiaries, ING USA, related to variable annuity cessions from ING USA to SLDI. On
May 8, 2013, Voya Financial, Inc. made a capital contribution to SLDI in the amount of $1.8 billion.
Immediately thereafter, SLDI deposited the contributed capital as cash collateral into a funds withheld trust
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