Loan Facility

RNS Number:6098T
Goshawk Insurance Holdings PLC
23 December 2003

                         GoshawK Insurance Holdings plc

      Term loan and stand-by letter of credit facility, issue of warrants

GoshawK Insurance Holdings plc ("GoshawK"), the parent company of GoshawK
Reinsurance Limited ("GoshawK Re"), announces that it has reached agreement with
its lending banks (the "Banks") in respect of its $65 million medium term loan
facility (the "Term Facility") and its #20 million letter of credit facility
(the "LoC Facility") (collectively, the "Facilities"), both of which were in
breach following the announcement of material reserve strengthening in respect
of Syndicate 102 (the "Syndicate") at Lloyd's earlier this year.

GoshawK has made the first repayment of principal and interest on the Term
Facility, the balance of which now stands at $52 million.  Four further
repayments of principal fall to be made in December 2004, 2005, 2006 and 2007.

The LoC Facility forms part of GoshawK's funds at Lloyd's and is available to
meet losses in the Syndicate.  The Syndicate having been put into run-off the
LoC Facility has been restructured so that, in the event of a drawdown by
Lloyd's, the obligation will be met through a drawdown on an extension to the
Term Facility. The maximum permitted borrowing in respect of the LoC Facility is
#15 million, the balance of #5 million having been collateralised from GoshawK's
existing resources.  GoshawK has provided against drawings on the LoC Facility
in full, as detailed in the announcement of 31 October 2003 and accordingly
these drawings will not impact on GoshawK's net asset value.  Borrowings under
the LoC Facility are to be repaid by not later than the end of 2009.

Pursuant to these arrangements, GoshawK has issued "A" warrants to the Banks
over 5,277,722 ordinary GoshawK shares, amounting to some 3% of the shares in
issue.  These warrants carry an exercise price of 35.25p, being the closing
mid-market price of GoshawK shares on Thursday 18 December 2003.  In the event
that the Facilities have not been repaid or terminated by 1 January 2005,
GoshawK has agreed that it will issue a further 1,759,240 "B" warrants and, in
the event that the Facilities have not been repaid or terminated by 1 January
2006, GoshawK has agreed that it will issue a further 1,759,240 "C" warrants.
The "A"warrants are exercisable from 20 December 2003 to 23 January 2008, the "B
" warrants from 1 January 2005 to 23 January 2008 and the "C" warrants from 1
January 2006 to 23 January 2008.  In total, these 8,796,202 warrants represent
5% of the current issued share capital of GoshawK.


                                                                23 December 2003

Enquiries :
GoshawK Insurance Holdings plc           020 7475 2020 (23 December to 24 December 2003)
                                         020 7621 0777 (29 December 2003 onwards)


Paul Spencer, Chairman
Andrew Castell, Finance Director

College Hill Associates                  020 7457 2020
Nick Elwes


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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