UPDATE 1-Conseco seeks to amend credit facility, shares surge

* Seeks to amend credit facility

* Says expects increase in interest rate payable

* Does not seek additional borrowing

* Shares surge as much as 58 percent

March 24 (Reuters) - Conseco Inc (CNO.N), a Midwestern U.S. life and accident insurer, said it was seeking to amend its existing $911.8 million senior secured credit facility, sending its shares up as much as 58 percent.

The proposed amendment, which is subject to approval from a majority of its lenders, is expected to provide for changes and waivers to its covenants and an increase in the interest rate payable by the company, Conseco said in a statement.

The insurer said the amendment does not seek any additional borrowing or changes to the current repayment schedule.

Banc of America Securities LLC will act as lead arranger in connection with the amendment, the company noted. Earlier this month, the company had warned of a possible default under its credit facility if auditors raised doubts over its ability to continue as a going concern.

Shares of the company were up 38 percent to 69 cents in afternoon trade on the New York Stock Exchange. Earlier they touched a high of 79 cents a share on the news. (Reporting by Tenzin Pema in Bangalore, Editing by Dinesh Nair)