S&P: Ohio National notes A+

Standard & Poor's said it assigned its A+ rating to Ohio National Life Insurance Co.'s $250 million surplus notes. The notes have a scheduled maturity of June 15, 2042.

According to S&P, approximately $50 million of the proceeds from the notes will be used to pay an extraordinary dividend to Ohio National Financial Services Inc. and $50 million will be used to pay off Ohio National Life's 7.5% surplus notes issued to Ohio National Financial. Ohio National Financial will then use that money and approximately $50 million of its own cash to repurchase the $145 million in senior notes due 2013.

Ohio National Life intends to use approximately $100 million from the notes' proceeds to purchase a surplus note from Montgomery Re. The remaining proceeds will be used for general corporate purposes.

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