By Andrea Heisinger
New York, Nov. 19 - Unitrin, Inc. priced $250 million of 6% five-year senior notes on Friday afternoon to yield 6%, a source close to the trade said.
The notes (Baa3/BBB-/) priced at a discount of 99.998 with a spread of Treasuries plus 448.8 basis points. Price talk on the sale was much tighter than where it priced. A source said guidance on Thursday when the sale was being marketed was in the 425 bps area.
The notes are callable at the greater of par or a make-whole redemption at Treasuries plus 60 bps.
J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., Goldman Sachs & Co., Macquarie Capital USA Inc., Raymond James & Associates Inc., Williams Capital Group LP and U.S. Bancorp Investments Inc.
Proceeds are going to repay $140 million under a credit facility, to make a $60 million capital contribution to subsidiary United Insurance Co. of America, for working capital and for other general corporate purposes.
The holding company for insurance and banking subsidiaries is based in Chicago.
| Issuer: | Unitrin, Inc.
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 30, 2015
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., Goldman Sachs & Co., Macquarie Capital USA Inc., Raymond James & Associates Inc., Williams Capital Group LP, U.S. Bancorp Investments Inc.
|
| Coupon: | 6%
|
| Price: | 99.998
|
| Yield: | 6%
|
| Spread: | Treasuries plus 448.8 bps
|
| Call: | Greater of par or make-whole at Treasuries plus 60 bps
|
| Trade date: | Nov. 19
|
| Settlement date: | Nov. 24
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 425 bps area
|
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