Underwriters Re in Credit Pact With 1st National

Underwriters Re Corp., moving to lower its borrowing costs, said it has signed a definitive agreement for a $100-million credit package from First National Bank of Chicago.

Underwriters Re, a Woodland Hills-based provider of reinsurance, plans to use part of the credit facility to redeem 15% senior notes that the company issued in 1988. The debt can be redeemed after Dec. 31.

A total of $160 million of the notes were originally issued, and a $102.1-million principal amount of the debt remains outstanding, the company said.