By Andrea Heisinger
New York, Oct. 11 - Nippon Life Insurance Co. priced a $2 billion offering of 5% 30-year callable subordinated notes (A2/A-/) at par to yield 5%, a market source said on Thursday.
Pricing was tighter than guidance in the 5.5% to 6% range.
There will be a fixed interest rate until Oct. 18, 2022 with a floating rate of Libor plus 424 basis points after that.
There is a call option starting Oct. 18, 2022 at a make-whole amount of 60 bps over Treasuries.
The bonds were sold under Rule 144A and Regulation S. The sale was initially announced on Oct. 4 with a roadshow following.
There are both optional and mandatory interest deferral options on the notes. There is a mandatory deferral of interest if a capital deficiency event occurs and is continuing, and if any payment related to the notes or a liquidation parity security has been deferred and continues to be in deferral for the fifth business day prior to an interest payment record date.
The company may also choose to defer payment of interest at any payment date other than the mandatory interest deferral dates.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were bookrunners.
Proceeds are being used for general corporate purposes.
The life insurance company is based in Chuo-ku, Osaka.
| Issuer: | Nippon Life Insurance Co.
|
| Issue: | Hybrid subordinated notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 18, 2042
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Bank of America Merrill Lynch, Daiwa Capital Markets America Inc., Deutsche Bank Securities Inc., Goldman Sachs International, Nomura Securities International, Inc.
|
| Coupon: | 5% until Oct. 18, 2022, Libor plus 424 bps after unless redeemed
|
| Price: | Par
|
| Yield: | 5% to 2022, then Libor plus 424 bps
|
| Spread: | Treasuries plus 327.8 bps
|
| Call: | On or after Oct. 18, 2022 at make-whole of Treasuries plus 60 bps
|
| Trade date: | Oct. 11
|
| Settlement date: | Oct. 18
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Price talk: | 5.5% to 6%
|
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