Published on 11/29/2023 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: F&G Annuities & Life prices $345 million 7.95% senior notes due 2053 at par
By William Gullotti
Buffalo, N.Y., Nov. 29 – F&G Annuities & Life, Inc. priced $345 million of 7.95% $25-par senior notes due 2053 (BBB-/BBB-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
CF Bermuda Holdings Ltd., FGL US Holdings Inc., Fidelity & Guaranty Life Business Services, Inc. and Fidelity & Guaranty Life Holdings, Inc. are the subsidiary guarantors for the notes.
The deal was upsized from $250 million, and according to an S-1 filing on Monday, includes a $37.5 million greenshoe.
The interest rate may be subject to adjustment upon a credit rating downgrade.
The notes are non-callable prior to Dec. 15, 2028. On or after that date, the notes are callable at par. The notes are also callable in whole at par if a tax event occurs.
Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are the joint bookrunners.
The notes are expected to be listed on the New York Stock Exchange under the symbol “FGN.”
Proceeds will be used to repay borrowings under the company’s credit agreement and for general corporate purposes, including the support of organic growth opportunities. As of Sept. 30, the company had $515 million of borrowings outstanding under the credit agreement.
The annuities and life insurance company is based in Des Moines.
| Issuer: | F&G Annuities & Life, Inc.
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| Guarantors: | CF Bermuda Holdings Ltd., FGL US Holdings Inc., Fidelity & Guaranty Life Business Services, Inc. and Fidelity & Guaranty Life Holdings, Inc.
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| Amount: | $345 million
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| Greenshoe: | $37.5 million
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| Issue: | Senior notes
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| Maturity: | Dec. 15, 2053
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| Bookrunners: | Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC
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| Senior co-managers: | Citigroup Global Markets Inc., Citizens JMP Securities, LLC, KeyBanc Capital Markets Inc., U.S. Bancorp Investments, Inc.
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| Co-managers: | Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC
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| Trustee: | Citibank, NA
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| Coupon: | 7.95%, subject to adjustment upon ratings event
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| Price: | Par of $25
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| Yield: | 7.95%
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| Call: | Non-callable prior to Dec. 15, 2028, followed by par call; at any time at par if a tax event occurs
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| Change of control: | At 101
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| Trade date: | Nov. 29
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| Settlement date: | Dec. 6
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| Ratings: | S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Cusip: | 30190A203
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