S&P rates Unitrin notes BBB-

Standard & Poor's said it assigned a BBB- senior debt rating to Unitrin Inc.'s proposed $250 million senior notes issue maturing in 2015.

The proposed issuance replaces Unitrin's $200 million of 4.875% senior notes that matured on Nov. 1, which the company repaid by tapping into its revolving credit facility and cash on its balance sheet, S&P said.

The proceeds will be used to fully repay its revolving credit facility; make a capital contribution of about $60 million to its subsidiary, United Insurance Co. of America; and general corporate purposes.

The company's leverage position and EBITDA fixed-charge coverage following the proposed $250 million issue is about 28.7 and 6.7x, respectively, compared with 27.4% and 7.1x as of the third quarter of 2010, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.