Lumbermens offers to purchase surplus notes on 10 cents on the dollar

Chicago, March 26 - Lumbermens Mutual Casualty Company offered to purchase all its $700 million outstanding surplus notes at 10 cents on the dollar.

The offer follows the refusal by the director of the Illinois Insurance Department of the company's request to make the interest payments due June 1 and July 1 on the notes.

Under the repurchase offer, the Long Grove, Ill.-based company is also seeking the consent of the surplus noteholders to amend terms of the surplus notes and related documents. The total purchase price of $100 per $1,000 principal amount includes a consent payment of $5 per $1,000 principal amount.

The expiration date for the offer is 9 a.m. ET on May 1, unless the deadline is extended by the company.

Lumbermens is the lead member of the intercompany group Kemper Insurance Co.

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