(Bloomberg) ? Wellington Underwriting Plc, a Lloyd?s of London insurer, said it got a ?120 million ($206 million) credit line from banks led by Barclays Plc and Lloyds TSB Group Plc, boosting its access to funds to help finance new business.

The arrangement will replace ?42.6 million in letters of credit, the London-based company said in a Regulatory News Service statement. The new facilities and the company?s other cash resources will provide about ?75 million to support future development.

Wellington, which currently owns 20 percent of Bermuda-based Aspen Re, earlier this month said it agreed to end funding arrangements with Premium Trust Plc and Coriander, a private investment group, replacing them with financing from Barclays and Lloyds TSB.

The new credit ?not only provides us with a more efficient capital structure but we now have the resources available to finance future initiatives,? chief executive officer Julian Avery said in the statement.

The borrowing is split into three portions, including a ?75 million five-year letter-of-credit facility used as funds at Lloyd?s of London to support Wellington?s underwriting. The annual commission on the letter-of-credit facility is 1.5 percent.

There is also a ?15 million, three-year revolving credit and a ?30 million three-year term loan. They both carry an interest margin of 1.5 percentage points.

Lexicon Partners advised Wellington on the credit line, the statement said.

Wellington shares have lost 1.9 percent of their value this year, a smaller drop than the 9.5 percent fall of the seven-member FTSE350 Insurance Index.