Unum Group launches tender offer for up to $450 million of notes

By Sarah Lizee

Olympia, Wash., Sept. 4 – Unum Group launched a capped tender offer to purchase for cash up to $450 million of notes, according to a press release.

The following are included in the capped tender offer:

• 7.405% capital securities due March 15, 2038 issued by Provident Financing Trust I, a wholly owned subsidiary of the company;

• 7.19% senior notes due Feb. 1, 2028;

• 7.25% senior notes due March 15, 2028;

• 6.75% senior notes due Dec. 15, 2028; and

• 3% senior notes due May 15, 2021.

The cap was increased from $300 million previously, according to a separate news release late Wednesday.

The 7.405%, 7.19%, 7.25% and 6.75% notes are subject to a combined purchase price not to exceed $100 million.

The offer is subject to a financing condition. The company announced Wednesday that it plans to price senior notes due 2049 and use proceeds for the tender offer. Cash on hand may also be used for the tender offer.

The company said the purpose of the tender offer and new issue is to acquire all or a portion of the outstanding securities as part of a plan to refinance a portion of its liabilities with longer maturity senior debt, and reduce its total interest expense, without materially changing its total debt.

Securities purchased in the tender offer will be retired and cancelled.

Pricing will be set at 10 a.m. ET on Sept. 18.

The tender offer will expire at 11:59 p.m. ET on Oct. 1.

Tenders may be withdrawn at any time at or prior to 5 p.m. ET on Sept. 17, but not after.

The tender consideration will be $1,175 for each $1,000 liquidation amount for the 7.405% securities and the applicable U.S. Treasury security plus a spread for the remaining notes.

Holders who tender their notes by the early tender deadline, 5 p.m. ET on Sept. 17, will receive an early tender premium of $30.00 per $1,000 of notes.

Holders will also receive accrued interest.

The early settlement date will be Sept. 19, and the final settlement date will be Oct. 2.

HSBC Securities (USA) Inc. (212 525-5552 collect, 866 HSBC-4LM toll-free or +44 20 7992 6237 Europe), BofA Securities, Inc. (980 386-6026 collect or 888 292-0070 toll-free), Goldman Sachs & Co. LLC (212 357-1452 collect or 800 828-3182 toll-free) and Wells Fargo Securities, LLC (704 410-4756 collect or 866 309-6316 toll-free) are acting as the joint dealer managers for the tender offer.

The information agent and tender agent is D.F. King & Co., Inc. (866 796-6867 toll-free or 212 269-5550 for banks and brokers).

Unum is an employee benefits provider based in Chattanooga, Tenn.

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