By Stephanie N. Rotondo
Phoenix, Oct. 29 - Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange priced $335 million of 6.15% trust surplus notes due 2053, according to a market source.
The notes were sold via a Rule 144A offering at a discounted price of 99.81.
The company can call the securities beginning in 2033.
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.
| Issuers: | Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange
|
| Securities: | Trust surplus notes
|
| Amount: | $335 million
|
| Maturity: | 2053
|
| Dividend: | 6.15%
|
| Price: | $99.81
|
| Par: | $100
|
| Call: | Beginning 2033
|
| Pricing date: | Oct. 29
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Distribution: | Rule 144A
|
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