Monitor upcoming quarterly filings for the company's debt-to-capital ratio and compliance with the 35% covenant. The extended maturity removes near-term refinancing risk but does not signal any change in operating performance or capital allocation.
Price Chart
Executive Summary
Mercury General Corp. entered into a Second Amended and Restated Credit Agreement on June 24, 2026, replacing its existing $250 million revolving credit facility with a new five-year, $250 million unsecured revolving facility maturing June 24, 2031. The new facility extends the maturity by five years and maintains the same borrowing capacity, with pricing tied to the company's debt-to-capital ratio. This is a routine refinancing that improves liquidity runway without changing the total commitment size.
Key Financial Metrics
Key Facts
- Entered into a $250 million unsecured revolving credit facility maturing June 24, 2031
- Replaces the prior $250 million facility that was set to mature earlier
- Pricing based on Debt to Capital Ratio: Term SOFR + 1.00% to 1.50%, Base Rate + 0.00% to 0.50%
- Financial covenants include minimum consolidated net worth of $1.55B + 25% of positive net income, debt-to-capital ratio ≤ 35%, and risk-based capital ratio ≥ 150%
- Facility is unsecured with customary representations, warranties, and events of default
Financial Impact
No change in total borrowing capacity ($250M); extended maturity by five years to 2031; pricing grid unchanged in structure from prior facility
Risk Factors
- If debt-to-capital ratio exceeds 35%, the company would be in covenant breach, triggering higher pricing or potential acceleration
- The facility is unsecured; any material deterioration in credit profile could increase borrowing costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-281118 |
| Document: d811201d8k.htm | 0001193125-26-281118 |
| Document: 0001193125-26-281118-index-headers.html | 0001193125-26-281118 |
| Document: 0001193125-26-281118-index.html | 0001193125-26-281118 |
| Document: 0001193125-26-281118.txt | 0001193125-26-281118 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 7, 2026 12w ago | Press Release | $110.84 $107.26 | ▼ −3.23% | ▼ −4.56% | $102.31 (−7.70%) |
Jun 24, 2026 14w ago | 8-K | $104.12 $105.46 | ▲ +1.29% | ▲ +0.76% | $102.31 (−1.74%) |
Jun 18, 2026 15w ago | Court Ruling | $102.67 $107.49 | ▲ +4.69% | ▲ +4.16% | $102.31 (−0.35%) |
Jun 10, 2026 16w ago | 424B5 | $99.14 $109.79 | ▼ −10.74% | ▼ −8.85% | $102.31 (−3.20%) |
Jun 9, 2026 16w ago | 424B5 | $101.11 $110.84 | ▲ +9.62% | ▲ +8.18% | $102.31 (+1.19%) |
Jun 9, 2026 16w ago | 8-K | $101.11 $110.84 | ▲ +9.62% | ▲ +8.18% | $102.31 (+1.19%) |
May 5, 2026 21w ago | 8-K | $96.02 $96.74 | ▲ +0.75% | ▼ −2.03% | $102.31 (+6.55%) |
Mar 31, 2026 26w ago | DEFA14A | $88.15 $96.14 | ▲ +9.06% | ▼ −0.36% | $102.31 (+16.06%) |
US Market Status
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