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Pacific Life Insurance, Pacific LifeCorp announce tender offer pricing

Pacific Life Insurance Co. and Pacific LifeCorp announced the pricing and upsizing of a cash tender offer to buy up to $500 million combined aggregate principal amount of certain outstanding surplus notes and senior notes.

The offer is to purchase Pacific Life Insurance's outstanding 7.90% surplus notes due 2023 and 9.25% surplus notes due 2039, as well as Pacific LifeCorp's outstanding 6.00% senior notes due 2020, 6.60% senior notes due 2033 and 5.125% senior notes due 2043.

The tender cap of the offer has been increased to about $573.2 million from $500 million principal amount. All other terms of the offer remain unchanged.

The companies plan to fund the purchase of the notes in the tender offer with a portion of the net proceeds from Pacific Life Insurance's offering of $750 million aggregate principal amount of 4.300% fixed-to-floating rate surplus notes due 2067, which is expected to close Oct. 24.

As of 5 p.m. ET on Oct. 16, about $236.4 million principal amount of the 9.25% surplus notes due 2039 was tendered, about $16.5 million principal amount of the 7.90% surplus notes due 2023 was tendered, about $13.6 million principal amount of the 6.60% senior notes due 2033 was tendered, about $89.5 million principal amount of the 5.125% senior notes due 2043 was tendered and about $217.3 million principal amount of the 6.00% senior notes due 2020 was tendered.

The offer will expire at 11:59 p.m. ET on Oct. 30, unless extended or earlier terminated.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC are acting as dealer managers for the offer. Global Bondholder Services is the depository and information agent.