MassMutual tenders for $350 million of 8.875%, 7.625% and 7.5% notes

By Susanna Moon

Chicago, March 3 – Massachusetts Mutual Life Insurance Co. began a cash tender offer for up to $350 million principal amount of its 8.875% surplus notes due 2039, 7.625% surplus notes due 2023 and 7.5% surplus notes due 2024.

Pricing will be set as follows, with the outstanding notes listed in order of priority acceptance level:

• $750 million 8.875% surplus notes due 2039 with pricing to be set using the 2.875% Treasury note due Nov. 15, 2046 plus 135 basis points;

• $250 million 7.625% surplus notes due 2023 with pricing based on 2.25% Treasury note due Feb. 15, 2027 plus 70 bps; and

• $100 million 7.5% surplus notes due 2024 with pricing based on 2.25% Treasury note due Feb. 15, 2027 plus 75 bps.

The total purchase price will include an early tender premium of $50.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on March 16, the early tender date.

The tender offer will continue until midnight ET on March 30.

Tendered notes may be withdrawn before the early deadline.

Holders will also receive accrued interest to but excluding the settlement date.

The offer contains a payment condition and also requires a minimum amount of $200 million principal amount of notes being tendered.

MassMutual plans to purchase the notes in the offer using proceeds of surplus notes issued in the capital markets.

Notes tendered before the early deadline will be given priority over those tendered afterward, regardless of priority level, according to a company announcement.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) are the joint lead dealer managers. D.F. King & Co., Inc. (212 269-5550, 866 864-7964 or mmutual@dfking.com) is the tender agent and information agent.

MassMutual is a Springfield, Mass.-based insurance company.

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