Voya 2014 Annual Report Download - page 369

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Effective January 24, 2014, SLDI entered into a letter of credit facility agreement with a third-party bank to
provide 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.
In November of 2014, SLDI extended a $750.0 collateral note facility supporting reserves on the Hannover Re
business upon its initial maturity date for another year until November 9, 2015.
Effective December 29, 2014, SLDI cancelled a $750.0 collateral note facility supporting reserves on the
Hannover Re business upon its initial maturity date. The cancelled capacity was replaced with letters of credit
issued under existing credit facility agreements.
On December 18, 2014, the Company terminated its financing transaction providing trust notes supporting a
reinsurance agreement in Roaring River III, LLC (“Roaring River III”).
In January of 2014, a $265.0 secured LOC issued by FHLB was reduced to $255.0. Effective December 18,
2014, the LOC was cancelled due to the cancellation of the underlying policies within a certain reinsurance
contract.
On February 11, 2015, Voya Financial, Inc. entered into a $195.0 Letter of Credit facility agreement with
Commerzbank AG which matures February 11, 2018 and includes an option to support the LOC outstanding
either on a secured or unsecured basis. As of the inception of the facility, Voya Financial, Inc. collateralized the
facility with $212.0 of cash and short-term investments. The LOC will be used to provide collateral under the
reinsurance agreements of Voya Financial, Inc. subsidiaries.
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
NN Group. The Senior Unsecured Credit Facility is guaranteed by Voya 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 included 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 50.0% of any debt securities issued by the Company, to a minimum of $750.0.
Additionally, the terms required Voya Financial, Inc. to maintain liquidity of $500.0 at all times (which covenant
was subsequently terminated as noted below). The total amount of LOCs and revolving credit borrowings
outstanding at any time may not exceed $3.5 billion. The Revolving Credit Agreement was to expire on April 20,
2015 at which time any outstanding borrowings would be due. The Company was to collateralize any LOCs
outstanding as of the expiration date of the facility. The costs of the Revolving Credit Agreement varied
depending on the current credit rating of the Company. The Company was to pay interest equal to LIBOR plus
200 bps on direct borrowings and an issuance fee of 200 bps for LOCs.
Immediately following the closing of the Revolving Credit Agreement, Voya Financial, Inc. drew $500.0 of
direct borrowings to replace internally funded financing. In addition, $1.4 billion of LOCs were issued to replace
$1.4 billion of LOCs issued under a pre-existing $2.5 billion syndicated LOC facility.
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