Farmers Insurance plans to issue at least $350 million surplus notes

By Angela McDaniels

Tacoma, Wash., Oct. 9 - Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange plan to issue at least $350 million of surplus notes, according to a company news release.

The proceeds and cash on hand will be used to fund tenders offers set to expire on Nov. 6.

Farmers Insurance Exchange is offering to buy back any and all of its $300 million 8.625% surplus notes due 2024. The three exchanges will buy back up to $550 million liquidation amount, less any amount accepted in the 8.625% notes tender offer, of Farmers Exchange Capital's outstanding 7.05% trust surplus note securities and 7.2% trust surplus note securities.

The dealer managers for the tender offer are Citigroup Global Markets Inc. and RBS Securities Inc. The exchanges, their subsidiaries and their affiliates make up the Farmers Insurance Group of Companies, an insurance group based in Los Angeles.

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