By Cristal Cody
Tupelo, Miss., Jan. 17 – Western and Southern Life Insurance Co. priced $500 million of 5.15% 30-year surplus notes (A2/A/A+) on Thursday at a spread of 210 basis points over Treasuries, according to a market source.
The deal was upsized from $400 million.
The notes were initially talked to price in the Treasuries plus 225 bps area.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners for the Rule 144A- and Regulation S-eligible offering.
The company held fixed income investor calls for the issue on Monday and Tuesday.
Proceeds will be used for general corporate purposes, including to repay debt following the completion on Dec. 31 of the company’s $1.55 billion acquisition of Gerber Life Insurance Co. from Nestle SA.
Western and Southern Life Insurance is a Cincinnati-based provider of life insurance, annuity and investment products.
| Issuer: | Western and Southern Life Insurance Co.
|
| Amount: | $500 million
|
| Description: | Surplus notes
|
| Maturity: | Jan. 15, 2049
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc.
|
| Coupon: | 5.15%
|
| Spread: | Treasuries plus 210 bps
|
| Trade date: | Jan. 17
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | Rule 144A and Regulation S
|
| Price guidance: | Treasuries plus 225 bps area
|
| Marketing: | Fixed income investor calls
|
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