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Unum Group starts cash tender offer for capital securities, senior notes

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Unum Group starts cash tender offer for capital securities, senior notes

Unum Group started a tender offer to purchase for cash up to the aggregate liquidation amount of the 7.405% capital securities due March 15, 2038, and the aggregate principal amount of its 7.19% senior notes due Feb. 1, 2028, 7.25% senior notes due March 15, 2028, 6.75% senior notes due Dec. 15, 2028, and 3.00% senior notes due May 15, 2021.

The capital securities were issued by Unum wholly owned subsidiary Provident Financing Trust I.

Unum intends to purchase securities with the net proceeds of one or more offerings of its senior unsecured debt securities, although it may also use available cash on hand. The company can purchase the capital securities and the 7.19%, 7.25% and 6.75% senior notes for a combined aggregate purchase price not to exceed $100 million. Meanwhile, it can purchase the 3.00% notes for a combined aggregate purchase price of up to $300 million, excluding accrued and unpaid distributions and interest until, but not including, the applicable settlement date and excluding fees and expenses related to the tender offer.

The tender offer's purpose is to acquire all or a portion of the outstanding securities as part of a plan to refinance part of the company's liabilities with longer-maturity senior debt and to reduce aggregate interest expense without materially changing total debt.

The tender offer will expire at 11:59 p.m. ET on Oct. 1, unless extended or earlier terminated. The consideration paid for securities validly tendered and accepted purchase will be $1,175 for each $1,000 liquidation amount in the case of the capital securities. In the case of the notes, the consideration will be determined in the manner described in the offer to purchase dated Sept. 4 by reference to a fixed spread plus the yield to maturity of the specified applicable U.S. Treasury security.

The early settlement date is expected to be Sept. 19, while the final settlement is anticipated to be Oct. 2.

HSBC Securities (USA) Inc., Bank of America Merrill Lynch, Goldman Sachs & Co. LLC and Wells Fargo Securities LLC are serving as the joint dealer managers for the offer. The information agent and tender agent for the offer is D.F. King & Co. Inc.