Principal Financial Group Inc. replaced its existing revolving Credit Facility with a five-year, unsecured revolving line allowing up to $900,000,000, effective September 9, 2026, and ending September 9, 2031. The agreement supports Liquidity and general corporate purposes, while its $1,300,000,000 expansion ceiling provides additional stated borrowing capacity subject to conditions.

Key Highlights

  • The amended and restated credit facility permits borrowings of up to $900,000,000.
  • Available commitments may rise to a maximum of $1,300,000,000 if specified conditions are met.
  • Principal Life insurance Company must maintain Statutory Surplus of $2,885,208,297.

Principal Financial Group Inc. (NASDAQ: PFG) has refinanced its existing revolving credit facility with an unsecured revolving line permitting borrowings of up to $900,000,000. The amended agreement took effect on September 9, 2026, and supports liquidity needs and other general corporate purposes. Principal Life Insurance Company is the borrower, while Principal Financial Group Inc. and Principal Financial Services, Inc. provide guarantees.

Facility Reaches 2031

Any borrowings would mature no later than that date and would bear interest at rates established under the agreement. The arrangement refinances the existing revolving credit facility dated October 18, 2022. It also permits the available amount to rise to a maximum of $1,300,000,000, subject to conditions including the absence of an Event of Default. Lenders are not required to provide any portion of a potential increase. No borrowings are currently outstanding under the credit facility.

Pricing And Flexibility Revised

The agreement changes the commitment fee and Margin pricing grid for borrowings. It also removes the credit spread adjustment that applied to Term SOFR borrowings under the previous facility. The revised terms provide additional operational flexibility for Principal Financial Group Inc. and its subsidiaries under certain covenant obligations. Principal Life Insurance Company remains the borrower, with Principal Financial Group Inc. and Principal Financial Services, Inc. serving as guarantors. The facility is unsecured. Amounts due may be accelerated following an Event of Default unless the issue is waived or cured.

Covenants Set Operating Limits

Principal Life Insurance Company must maintain Statutory Surplus of $2,885,208,297 under the financial covenants. Principal Financial Group Inc. must also keep its Total Debt to Total Capital ratio at no more than 35%. The agreement includes restrictions, subject to exceptions and materiality thresholds, on liens, mergers or consolidations and disposals of all or substantially all Assets by the Loan parties and their Significant Subsidiaries. It also contains customary representations, warranties, affirmative covenants and negative covenants.