UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities and Exchange Act of 1934
June 18, 1997
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Date of Report (Date of earliest event reported)
Everest Reinsurance Holdings, Inc.
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(Exact name of Registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-13816
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(Commission File Number)
22-3263609
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(IRS Employer Identification Number)
Westgate Corporate Center
477 Martinsville Road
P.O. Box 830
Liberty Corner, New Jersey 07938-0830
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(Address of principal executive officer)
(908) 604-3000
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(Registrant's telephone number)
3 Gateway Center
Newark, New Jersey 07102
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(Former name or former address, if changed since last report)
Page 1 of 3 (plus attachment)
ITEM 5. OTHER EVENTS
(a) On June 16, 1997, the registrant finalized a 364 day revolving credit
facility from First Union National Bank (the "Credit Facility"). The Credit
Facility, which will be used for liquidity and general corporate purposes,
provides for the borrowing of up to $50 million with interest at a rate selected
by the registrant equal to either (i) the Base Rate (as defined below), (ii) an
adjusted London InterBank Offered Rate ("LIBOR") plus a margin (the "Margin") or
(iii) a Money Market Rate, which is a daily uncommitted advised rate. The Base
Rate is the higher of the rate of interest established by the bank from time to
time as its reference rate in making loans or the Federal Funds rate plus 0.5%
per annum. The amount of the Margin and the commitment fee payable to the bank
for the Credit Facility depend upon the insurance strength or claims paying
ability ratings of Everest Reinsurance Company, a subsidiary of the registrant.
The Credit Facility agreement requires that Everest Reinsurance Company
maintain statutory surplus of not less than $575 million and that the registrant
not allow its ratio of certain debt to capital to be greater than a specified
amount. A copy of the Credit Facility agreement is filed herewith as Exhibit
10.19 and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
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Exhibit No. Description
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10.19 Credit Agreement between Everest
Reinsurance Holdings, Inc. and First
Union National Bank dated June 16,
1997 providing for a $50 million
revolving credit facility.
SIGNATURE
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Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EVEREST REINSURANCE HOLDINGS, INC.
/s/ JANET BURAK MELCHIONE
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Janet Burak Melchione
Senior Vice President, General Counsel
and Secretary
Dated: June 18, 1997
Page 2 of 3 (plus attachment)
EXHIBIT INDEX
Exhibit No. Description Page No.
- ----------- ----------- --------
10.19 Credit Agreement between Everest Filed herewith
Reinsurance Holdings, Inc. and First
Union National Bank dated June 16,
1997 providing for a $50 million
revolving credit facility.
Page 3 of 3 (plus attachment)