Published on 9/15/2022 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Reinsurance Group of America sells $700 million 7.125% $25-par subordinated debentures
By Wendy Van Sickle
Columbus, Ohio, Sept. 15 – Reinsurance Group of America, Inc. priced $700 million of 7.125% $25-par fixed-rate reset subordinated debentures due 2052, according to a news release.
For the first five years the coupon will be set at 7.125%. Then, starting Oct. 15, 2027, it will float based on the five-year Treasury rate plus a margin of 345.6 basis points.
The notes are redeemable at par on the first reset date and any time thereafter.
The company will apply to list the notes on the New York Stock Exchange under the symbol “RZC.”
Wells Fargo Securities, LLC, BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG and RBC Capital Markets, LLC are the bookrunners.
Proceeds will be used to fund a tender offer for the company’s 2042 debentures and then redeem any of the remaining debentures. Any remaining proceeds will be used for general corporate purposes.
Reinsurance Group is a Chesterfield, Mo.-based reinsurance company.
| Issuer: | Reinsurance Group of America Inc.
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| Amount: | $700 million
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| Issue: | Fixed-rate reset subordinated debentures
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| Maturity: | 2052
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| Bookrunners: | Wells Fargo Securities, LLC, BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG and RBC Capital Markets, LLC
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| Co-managers: | KeyBanc Capital Markets Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | In-house counsel and Bass, Berry and Sims, plc
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Coupon: | 7.125% until Oct. 15, 2027, then Treasuries plus 345.6 bps
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| Price: | Par of $25
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| Call options: | At par starting on Oct. 15, 2027
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 23
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| Symbol: | NYSE: RZC
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