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Liberty Mutual prices exchange offers, opts for early settlement date

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Liberty Mutual prices exchange offers, opts for early settlement date

Liberty Mutual Group Inc. has priced its offers to exchange new senior notes due 2050 for six series of its outstanding notes.

The notes are its series A junior subordinated notes, series C junior subordinated notes, 6.500% senior notes due 2042, 7.000% senior notes due 2034, 6.500% senior notes due 2035 and 4.850% senior notes due 2044.

The company said it will pay interest on the notes at a rate per annum equal to 3.951%. The total exchange consideration is $1,323.47 for the series A junior subordinated notes; $1,658.64 for the series C junior subordinated notes; $1,416.33 for the 6.500% senior notes due 2042; $1,366.96 for the 7.000% senior notes due 2034; $1,348.62 for the 6.500% senior notes due 2035; and $1,167.64 for the 4.850% senior notes due 2044.

Liberty Mutual accepted an aggregate principal amount of $1.25 billion of the existing notes validly tendered at or before 5 p.m. ET on Sept. 24 or the early participation date. The company will deliver the same amount of new notes and will pay an aggregate of $410.96 million cash consideration, including accrued and unpaid interest, for the existing notes accepted for exchange on the early settlement date. As required, at least $300 million aggregate principal amount of the notes will be issued on the early settlement date.

The company also elected to have an early settlement date. The existing notes validly tendered at or before the early participation date will settle on Sept. 27, unless extended.

Since the principal amount of new notes issuable in the exchange offers would exceed the new notes issuance limit of $1.25 billion, no additional existing notes will be accepted after the early participation date.

The exchange offers will expire at 11:59 p.m. ET on Oct. 8, unless extended or earlier terminated.