Unum sets pricing in tenders for seven series of notes; delays early deadline

By Laura Lutz

Des Moines, Nov. 15 - Unum Group set pricing in its tender offers and consent solicitations. The company also pushed back the early tender deadlines to 5 p.m. ET on Nov. 19 from Nov. 14.

Unum is tendering for seven series of notes. All of the tender offers expire at midnight ET on Nov. 29.

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.

For each $1,000 of securities tendered by the early deadline and accepted by Unum, the company said it will pay:

• $1.062.47 plus $15.43 in accrued interest for the 7.405% capital securities;

• $1,077.36 plus $18.85 in accrued interest for the 7 5/8% notes;

• $1,100.01 plus $33.80 in accrued interest for the 7 3/8% notes;

• $1,029.57 plus $30.94 in accrued interest for the 6¾% notes;

• $1,084.33 plus $15.10 in accrued interest for the 7¼% notes;

• $1,054.87 plus $26.25 in accrued interest for the 7% notes; and

• $1,015.11 plus $2.44 in accrued interest for the 5.859% notes.

Those payouts will include an early tender payment of $30.00 per $1,000 principal amount of securities. Securities tendered after the early deadline will not receive the early tender payment.

Pricing was set at 2 p.m. ET on Nov. 14. Each payout is 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.

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.

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

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

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