MassMutual prices exchange offers for four series of surplus notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 8 – Massachusetts Mutual Life Insurance Co. priced the four separate exchange offers under which it is offering to exchange any and all of its outstanding 5.625% surplus notes due 2033, 8.875% surplus notes due 2039, 5.375% surplus notes due 2041 and 4.5% surplus notes due 2065 for new surplus notes and cash, according to a press release.

The notes are exchangeable for the following exchange considerations per $1,000 principal amount:

• $250 million 5.625% notes, with pricing set using the 2.875% Treasury due May 15, 2049 plus 70 basis points, for $1,326.05 of new surplus notes and $1 in cash;

• $310 million 8.875% notes, with pricing set using the 2.875% Treasury due May 15, 2049 plus 115 bps, for $1,612.25 of new surplus notes and $215 in cash;

• $400 million 5.375% notes, with pricing set using the 2.875% Treasury due May 15, 2049 plus 115 bps, for $1,347.11 of new surplus notes; and

• $500 million 4.5% notes, with pricing set using the 2.875% Treasury due May 15, 2049 plus 160 bps, for $1,193.30 of new surplus notes.

Holders will also receive accrued interest.

Pricing was set at 2 p.m. ET on Oct. 8.

Each exchange offer will expire at 5 p.m. ET on Oct. 8.

Tendered notes may be withdrawn before the deadline.

The exchange offers are conditioned on the issuance of a minimum of $300 million aggregate principal amount of new surplus notes, unless waived by MassMutual.

Settlement is expected for Oct. 11.

The new surplus notes will mature on Oct. 15, 2070 and will bear interest at an annual rate equal to the sum of the bid-side yield on the 2.875% Treasury due May 15, 2049 plus 170 bps.

D.F. King & Co. (866 829-0542 toll-free or 212 269-5550 collect) is the information and exchange agent.

MassMutual is a Springfield, Mass.-based insurance company.

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