By Lisa Kerner
Charlotte, N.C., May 5 – Unum Group detailed the sale of its $600 million of senior notes (Baa2/BBB) in two parts, including a reopening, according to an FWP filed with the Securities and Exchange Commission.
As previously reported, the company sold $350 million of 3% five-year notes at Treasuries plus 180 basis points, on the tight side of guidance of 185 bps, plus or minus 5 bps, on Wednesday.
The 3% notes sold at 99.782 to yield 3.047%.
Unum also priced $250 million in an add-on to its 5.75% notes due Aug. 15, 2042 at Treasuries plus 270 bps. The notes were talked at Treasuries plus 275 bps, plus or minus 5 bps.
The notes sold at 105.672 to yield 5.345%.
Unum originally sold the notes on Aug. 20, 2012 at a spread of Treasuries plus 287.5 bps. The total outstanding is $500 million.
The settlement date is May 9.
The bookrunners were J.P. Morgan Securities LLC and Barclays.
Proceeds from the sale of the notes will be used for general corporate purposes, including the repayment at maturity of the company’s outstanding 7.125% senior notes due in September.
Unum is an employee benefits provider based in Chattanooga, Tenn.
| Issuer: | Unum Group
|
| Amount: | $600 million
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays
|
| Co-managers: | Citigroup Global Markets Inc.; BofA Merrill Lynch; Regions Securities LLC; SunTrust Robinson Humphrey, Inc.; U.S. Bancorp Investments, Inc.; Wells Fargo Securities, LLC; BB&T Capital Markets, a division of BB&T Securities, LLC; BNY Mellon Capital Markets, LLC; Fifth Third Securities, Inc.
|
| Pricing date: | May 4
|
| Settlement date: | May 9
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2021
|
| Amount: | $350 million
|
| Maturity: | May 15, 2021
|
| Coupon: | 3%
|
| Price: | 99.782
|
| Yield: | 3.047%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps, callable at par from April 15, 2021
|
| Price guidance: | Treasuries plus 185 bps, plus or minus 5 bps
|
|
|
| Notes due 2042
|
| Amount: | $250 million reopening
|
| Maturity: | Aug. 15, 2042
|
| Coupon: | 5.75%
|
| Price: | 105.672, plus accrued interest
|
| Yield: | 5.345%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole call at any time at a discount rate of Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 275 bps, plus or minus 5 bps
|
| Total outstanding: | $500 million, including $250 million notes priced Aug. 20, 2012 at 287.5 bps over Treasuries
|
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