CNO gets no more tenders in offer, issues make-whole call for 9% notes

By Susanna Moon

Chicago, Oct. 2 - CNO Financial Group, Inc. said it received no more tenders from the holders of its $275 million of 9% senior secured notes due 2018 since the early tender deadline of 5 p.m. ET on Sept. 17.

The offer expired at midnight ET on Oct. 1, and the company settled the early tendered notes on Sept. 28, according to a company press release. The offer began on Sept. 4.

Holders had tendered $273,806,000 principal amount, or about 99.6%, of the notes by the early tender date.

As noted, the consents received by then were more than enough to approve the proposed amendments to the notes.

The company solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.

The total purchase price was $1,173.65 per $1,000 principal amount of notes tendered by the consent deadline, which included a $30.00 consent payment.

CNO also said that it entered into a supplemental indenture that eliminated substantially all of the restrictive covenants contained in the notes indenture and events of default and related provisions.

The company said it also called the remaining $1,194,000 principal amount of notes at a make-whole redemption amount plus accrued interest to but excluding the redemption date of Oct. 29.

Those who tendered after the early deadline were to receive $1,143.65 per $1,000 of notes.

Holders also will receive accrued interest to the settlement date.

According to a previous news release, the total purchase price was equal to the redemption price, excluding accrued interest, that would be payable if CNO had exercised its option under the indenture to redeem the notes on Sept. 28.

With the call for the remaining notes, all of the collateral securing the notes under the indenture and the related security documents will be released, the company previously said.

The offer was conditioned on the completion of a proposed offering of senior notes and the satisfaction of all conditions of a proposed new credit facility.

CNO priced an upsized $275 million issue of eight-year senior secured notes at par to yield 6 3/8% on Sept. 20, as reported by Prospect News.

Goldman Sachs & Co. (800 828-3182 or 212 902-5183) and J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200) were the dealer managers and solicitation agents. Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) was the information agent.

Carmel, Ind.-based CNO is a holding company for insurance subsidiaries including Bankers Life and Casualty Co., Washington National Insurance Co. and Colonial Penn Life Insurance Co.

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