Unum tenders for seven series of notes; calls 7¼% Pines

By Laura Lutz

Des Moines, Oct. 31 - Unum Group launched tender offers and consent solicitations for $400 million of seven series of notes.

The company also called its entire $150 million outstanding principal amount of its 7¼% public income notes (Pines) due 2032.

The notes affected by the tender offers are: $250 million of 7.405% capital securities due March 15, 2036; $325 million of 7 5/8% senior notes due March 1, 2011; $250 million of 7 3/8% senior debentures due June 15, 2032; $250 million of 6¾% senior notes due Dec. 15, 2028; $200 million of 7¼% senior notes due March 15, 2028; $200 million of 7% senior notes due July 15, 2018; and $150 million of 5.859% senior notes due May 15, 2009.

There is no maximum tender amount for the 7.405% capital securities.

Unum will accept tenders for up to $400 million of the other securities, including no more than $100 million of the 7 5/8% notes.

If more than that amount of securities is tendered, tenders for each series of notes will be accepted in the order that the series are listed above.

All of the tender offers expire at midnight ET on Nov. 29. The early tender deadlines are 5 p.m. ET on Nov. 14.

For each $1,000 of securities tendered by the early deadline and accepted by Unum, the payout will be based on a fixed spread over the yield of a specific U.S. Treasury:

• For the 7.405% capital securities, 230 basis points over the yield of the 5% U.S. Treasury due 2037;

• For the 7 5/8% notes, 135 bps over the yield of the 4.5% U.S. Treasury due 2011;

• For the 7 3/8% debentures, 192 bps over the yield of the 5 3/8% U.S. Treasury due 2031;

• For the 6¾% notes, 185 bps over the yield of the 5¼% U.S. Treasury due 2028;

• For the 7¼% notes, 185 bps over the yield of the 6 1/8% U.S. Treasury due 2027;

• For the 7% notes, 190 bps over the yield of the 9 1/8% U.S. Treasury due 2018; and

• For the 5.859% notes, 120 bps over the yield of the 4 7/8% U.S. Treasury due 2009.

Those payouts will include a $30.00 consent payment. Securities tendered after the consent deadline will not receive the consent payment.

Morgan Stanley (212 761-5797 or toll-free 800 624-1808) is the dealer manager. D.F. King & Co (212 269-5550 or toll-free 888 869-7406) is the tender agent and information agent.

7¼% Pines redemption

Unum became eligible to redeem the 7¼% Pines on June 25 under their original terms.

The redemption date is Dec. 3, and the redemption amount is par plus accrued interest up to the redemption date.

Based in Chattanooga, Tenn., Unum provides employee benefits products and services and disability income protection insurance.

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