2 Mar, 2022

HG bonds: Progressive completes $1.5B offering in 3 parts for liquidity; terms

The Progressive Corp. today completed a $1.5 billion offering of senior notes, split across $500 million each of 2.50% five-year notes at T+75, 3.00% 10-year notes at T+115 and 3.70% 30-year bonds at T+145.

The insurance holding company earmarked the proceeds for general corporate purposes.

Progressive faces no long-term bond maturities until its $500 million issue of 2.45% senior notes comes due Jan. 15, 2027, according to regulatory filings. The new offering extends its maturity curve past its current longest-dated issue, the 3.95% senior notes due 2050.

Today's offering is the first for Progressive since it placed the 2050 notes in the early days of the pandemic. On March 17, 2020, it completed a $1 billion offering across $500 million each of 3.2% 10-year notes due March 26, 2030, at T+225, and 3.95% 30-year notes due March 26, 2050, at T+245.

Progressive's A/A2/A+ issuer ratings profile (A/A2/A for senior unsecured) reflects stable outlooks on all sides.

Terms:

Issuer Progressive Corp.
Ratings A/A2/A
Amount $500 million
Issue SEC-registered senior notes
Coupon 2.500%
Price 99.962
Yield 2.508%
Spread T+75
Maturity March 15, 2027
Call Make-whole T+15 until notes are callable at par from one month prior to maturity.
Px Talk IPT T+95 area
Issuer Progressive Corp.
Ratings A/A2/A
Amount $500 million
Issue SEC-registered senior notes
Coupon 3.000%
Price 99.759
Yield 3.028%
Spread T+115
Maturity March 15, 2032
Call Make-whole T+20 until notes are callable at par from three months prior to maturity.
Px Talk IPT T+135 area
Issuer Progressive Corp.
Ratings A/A2/A
Amount $500 million
Issue SEC-registered senior notes
Coupon 3.700%
Price 99.747
Yield 3.714%
Spread T+145
Maturity March 15, 2052
Call Make-whole T+25 until notes are callable at par from six months prior to maturity.
Trade March 2, 2022
Settle March 15, 2022
Books CS/GS/JPM/SIEBERT
Px Talk IPT T+175 area
Notes Proceeds for general corporate purposes