By Andrea Heisinger
New York, Oct. 6 - Protective Life Corp. priced $700 million of senior notes (Baa2/A-/BBB) in two tranches on Tuesday, an informed source said.
The $400 million of 7.375% 10-year notes priced at 99.935 to yield 7.384% with a spread of Treasuries plus 412.5 basis points.
A $300 million tranche of 8.45% 30-year notes priced at 99.986 to yield 8.451% with a spread of Treasuries plus 437.5 bps.
Both tranches came in line with price guidance, which was 412.5 bps for the 10-year notes and 437.5 bps for the 30-year notes.
All the notes have a make-whole redemption at 50 bps over Treasuries.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Securities. Co-managers were Morgan Keegan, Protective Securities and U.S. Bancorp Investments.
Proceeds are being used to purchase newly issued surplus notes of insurance subsidiary Golden Gate Capital Insurance Co.
The holding company for subsidiaries providing financial and insurance products is based in Birmingham, Ala.
| Issuer: | Protective Life Corp.
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital, Wells Fargo Securities
|
| Co-managers: | Morgan Keegan, Protective Securities, U.S. Bancorp Investments
|
| Trade date: | Oct. 6
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: BBB
|
|
|
| Ten-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 15, 2019
|
| Coupon: | 7.375%
|
| Price: | 99.935
|
| Yield: | 7.384%
|
| Spread: | Treasuries plus 412.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 412.5 bps
|
|
|
| Thirty-year notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2039
|
| Coupon: | 8.45%
|
| Price: | 99.986
|
| Yield: | 8.451%
|
| Spread: | Treasuries plus 437.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 437.5 bps
|
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