Pacific Life prices tender offer, increases cap to $573.25 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 17 – Pacific Life Insurance Co. and Pacific LifeCorp increased the cap in their tender offers for five note series to $573,247,000 from $500 million and announced pricing of the offers.

The offer opened on Oct. 3, and the early deadline was 5 p.m. ET on Oct. 16.

The increased tender cap matches the amount of early tenders received. The company said it will not accept any further tenders.

The early tender amounts received and the prices that will be paid per $1,000 principal amount are as follow:

• $236,447,000, or 38.1%, of Pacific Life’s $621,002,000 9.25% surplus notes due 2039 for $1,702.06; pricing was set using the 3% U.S. Treasury note due May 15, 2047 plus 145 basis points;

• $16,451,000, or 11%, of Pacific Life’s $150 million 7.9% surplus notes due 2023 for $1,248.34; pricing was set using the 1.875% Treasury note due Sept. 30, 2022 plus 145 bps;

• $13.55 million, or 2.3%, of Pacific LifeCorp’s $600 million 6.6% senior notes due 2033 for $1,309.95; pricing was set using the 3% Treasury note due May 15, 2047 plus 115 bps;

• $89.51 million, or 17.9%, of Pacific LifeCorp’s $500 million 5.125% senior notes due 2043 for $1,150.97; pricing was set using the 3% Treasury note due May 15, 2047 plus 135 bps; and

• $217,289,000, or 48.3%, of Pacific LifeCorp’s $450 million 6% senior notes due 2020 for $1,089.37; pricing was set using the 1.375% Treasury note due Feb. 15, 2020 plus 37.5 bps.

The total purchase price includes an early tender payment of $50 per $1,000 principal amount of notes tendered by the early deadline.

Holders also will receive accrued interest to but excluding the settlement date of Oct. 24.

Tendered notes could be withdrawn before the early deadline.

Because the tender cap was reached by the early deadline, the company said it will not accept any additional tenders through the offer’s expiration at 11:59 p.m. ET on Oct. 30.

Pricing was set at 2 p.m. ET on Oct. 17.

Pacific Life Insurance Co. plans to fund the tender offer with proceeds of its $750 million offering of 4.3% fixed-to-floating rate surplus notes due 2067, which is expected to close on Oct. 24.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and Goldman Sachs & Co. LLC (800 828-3182 or 212 902-6595) are the dealer managers. Global Bondholder Services (866 470-4300) is the depositary and information agent. Pacific Life is an insurance company

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