BOCA RATON, Fla. -- Financial Benefit Group Inc. said it has an agreement with Shawmut Bank of Connecticut for a $16 million line of credit that amortizes over 5 1/2 years.

Proceeds have been- used to prepay a $10 million subordinated convertible. debenture issued to Southwestern Life Insurance Co. and a $5 million loan from Southwestern Life Corp.

Financial Benefit, an insurance holding company and specialist in annuities, has eliminated all debts to Southwestern Life, the former ICH Corp. Financial Benefit chairman Frank T. Crohn said the new relationship with Shawmut would help the company grow, reduce costs, and increase profitability without shareholder dilution.

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