closed $125 million in financing, a syndicated bank facility led by Chase Manhattan Bank NA.

The financing comprises a seven-year term loan of $100 million and a revolving credit line of $25 million.

Sphere Drake said $47 million of the loan will be used to increase the capital of its UK insurance unit, Sphere Drake Insurance Plc. The balance of the term loan has been used to repay existing bank borrowings and inter-company debt.

The facility is guaranteed by Sphere Drake Holdings Ltd. and other group companies.

President and chief executive, Mr. Ian H. Dean, commented, "I am very pleased to announce the closing of this loan facility and the increase in capital for the UK subsidiary Sphere Drake Insurance plc.

"This capital increase reflects our commitment to satisfying the needs of our brokers and clients, who are increasingly looking for the highest calibre of financial security in their insurers and reinsurers, and brings the total share capital of Sphere Drake Insurance plc to over $236 million.

Sphere Drake Holdings Ltd. underwrites specialty lines of international property and casualty insurance.

This Bloomberg graph shows the effect on Sphere Drake's share price of the September 27 announcement that it was increasing reserves on marine protection and indemnity insurance account by up to $15 million by the end of 1995, impacting earnings by $0.69 cents a share or $12.75 million.