Published on 3/3/2022 in the Prospect News High Yield Daily and Prospect News Preferred Stock Daily.
New Issue: Kemper prices $150 million $25-par 5.875% junior subordinated debentures due 2062
By Wendy Van Sickle
Columbus, Ohio, March 3 – Kemper Corp. priced $150 million of $25-par 5.875% fixed-rate reset junior subordinated debentures due 2062 (Ba1/BB+/BB+) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The interest rate will reset in 2027 and every five years after that at Treasuries plus 414 basis points.
The debentures are redeemable in whole or in part beginning on the first reset date. The debentures are also callable within 90 days of a tax event, regulatory capital event or rating agency event.
Wells Fargo Securities, LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.
The company plans to use the proceeds for general corporate purposes, which may include ordinary course working capital and investments in other business opportunities, including acquisitions.
The company intends to list the debentures on the New York Stock Exchange under the symbol “KMPB.”
Kemper is an insurance holding company based in Chicago.
| Issuer: | Kemper Corp.
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| Amount: | $150 million
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| Issue: | Fixed-rate reset junior subordinated debentures
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| Maturity: | March 15, 2062
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| Bookrunners: | Wells Fargo Securities, LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC
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| Co-managers: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Raymond James & Associates, Inc., Regions Securities LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
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| Counsel to issuer: | In-house counsel and also by Skadden, Arps, Slate, Meagher & Flom LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Coupon: | 5.875% for five years, then resets every five years at Treasuries plus 414 bps
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| Price: | Par of $25
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| Yield: | 5.875%
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| Call option: | On or after March 15, 2027 at par plus accrued interest or within 90 days of a tax or rating agency event
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| Pricing date: | March 3
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| Settlement date: | March 10
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| Expected ratings: | Moody's: Ba1
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | SEC registered
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| Symbol: | NYSE: KMPB
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| Cusip: | 488401308
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