2026-03-31 20:20:11
Lincoln National Corp Enters $2 Billion Amended Credit Agreement with Banks
Expected Stock impact: Slightly Positive
On March 27, 2026, Lincoln National Corporation announced the execution of a Third Amended and Restated Credit Agreement with a syndicate of banks, including Bank of America, N.A. as the administrative agent. This agreement amends and restates the previous credit agreement dated December 21, 2023. The new agreement allows for the issuance of letters of credit and borrowing of up to $2 billion, with a commitment termination date set for March 27, 2031. Under the terms of the agreement, Lincoln National will incur a fee of 1.0% per annum on issued syndicated letters of credit and a facility fee of 0.125% per annum on the aggregate commitment, both of which are subject to adjustment based on changes in the company's credit ratings. The agreement includes customary covenants that restrict the company’s ability to incur liens, merge, or dispose of significant assets, along with financial covenants that require maintenance of a minimum consolidated net worth and a specific debt-to-capital ratio. The company views this agreement as a strategic move to enhance its liquidity and financial flexibility, positioning itself for future growth and operational stability.
