Principal pricing notes in three parts Tuesday for Cuprum acquisition

By Andrea Heisinger

New York, Nov. 13 - Principal Financial Group, Inc. is planning an offering of senior notes (A3/BBB+/A-) in three maturities on Tuesday, according to a filing with the Securities and Exchange Commission.

The offering includes maturities of November 2017, May 2023 and May 2043.

The five-year notes have guidance in the 137.5 basis points area, plus or minus 2.5 bps; the 10.5-year tranche is talked in the 162.5 bps area, plus or minus 2.5 bps; and the 30.5-year bonds have talk in the 175 bps area.

Bookrunners are Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and UBS Securities LLC.

Proceeds will be used to pay a portion of the $1.5 billion acquisition consideration for Chile's Administradora de Fondos de Pensiones Cuprum SA.

There is a mandatory call if the Cuprum acquisition is done on or before Nov. 19, 2013.

Principal Financial was last in the market with a $600 million sale in 10-year and 30-year tranches on Sept. 6.

The retirement savings, investment and insurance products company is based in Des Moines.

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