MBIA Inc. said last week it secured a $225 million line of credit from a group of banks led by Wachovia Bank of Georgia.
The new line of credit will be used to replace four existing credit facilities totaling $130 million. Combined with an existing $575 million, sevenyear standby letter of credit and a $25 million facility, the new credit line brings MBIA's total credit lines to $825 million.
Other members of the new bank credit group include Banco Santander, Sumitomo Bank Ltd., Chase Manhattan Bank, Commerzbank, Industrial Bank of Japan Ltd., and NBD Bank.
MBIA Inc. is the holding company for Municipal Bond Investors Assurance Corp., the largest financial guaranty insurer.
"This credit facility expands MBIA's liquidity and provides greater financial flexibility for both the company's financial guarantee insurance and emerging businesses," said MBIA's treasurer, Christopher W. Tilley, in a prepared statement.
Separately, MBIA said Friday that funds of the Greater Cleveland Regional Transit Authority deposited in the Provident Bank will be covered under MBIA's Assurety program.
The Cincinnati-based Provident Bank is the first bank in Ohio to offer the Assurety program and is the 20th commercial bank to do so, MBIA's press release said.
Assurety provides municipalities with insurance for their deposits above and beyond the Federal Deposit Insurance Corp.'s $100,000 limit. Since its inception in October 1991, Assurety has provided coverage on nearly $2.5 billion of public funds.