Principal Financial to price senior notes due 2033, 2053

By William Gullotti

Buffalo, N.Y., March 6 – Principal Financial Group, Inc. is preparing a two-part offering of senior notes due 2033 and 2053, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Principal Financial Services, Inc., a subsidiary of the issuer.

Each series will feature a make-whole call, followed by a par call. The par call for the 10-year notes will start three months prior to maturity, with the par call for the 30-year notes starting six months prior to maturity.

Bank of New York Mellon Trust Co., NA is the trustee.

Citigroup Global Markets Inc., BofA Securities, Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are the joint bookrunning managers for the offering.

Debevoise & Plimpton LLP and in-house counsel will advise the issuer and guarantor. Pillsbury Winthrop Shaw Pittman LLP will be counsel to the underwriters.

Proceeds will be used, together with available cash, to redeem all the outstanding $400 million 4.7% fixed-to-floating rate junior subordinated notes due 2055 and to repay at maturity all the $300 million outstanding 3.125% senior notes due 2023.

The investment management company is based in Des Moines.

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