By Andrea Heisinger
New York, March 26 - Assurant, Inc. gave terms of its $700 million of notes (Baa2/BBB/) sold in two maturities during Monday's session in an FWP filing with the Securities and Exchange Commission.
The size was decreased from a planned $750 million in three parts, with a 30-year bond axed from the sale and the remaining two tranches reallocated in size.
A $350 million tranche of 2.5% five-year notes was sold at 99.82 to yield 2.539% with a spread of Treasuries plus 175 basis points. There is a make-whole call at Treasuries plus 30 bps.
There was $350 million of 4% 10-year notes were priced at 99.635 to yield 4.045% with a spread of 212.5 bps over Treasuries. The tranche features a make-whole call at 35 bps over Treasuries.
Coupons given for both maturities in Tuesday's Prospect News Investment Grade Daily were incorrect.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repayment of $500 million of 5.63% notes due in February of 2014.
The specialized insurance company is based in New York City.
| Issuer: | Assurant, Inc.
|
| Issue: | Notes
|
| Amount: | $700 million, downsized from $750 million
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Senior co-managers: | Wells Fargo Securities LLC, KeyBanc Capital Markets Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | BMO Capital Markets Corp., Scotia Capital (USA) Inc., Williams Capital Group, LP, Goldman Sachs & Co., UMB Financial Services, Inc.
|
| Trade date: | March 25
|
| Settlement date: | March 28
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 2.5%
|
| Price: | 99.82
|
| Yield: | 2.539%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 4%
|
| Price: | 99.635
|
| Yield: | 4.045%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
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