Pacific Life early tenders for $500 million of five notes exceed cap

By Wendy Van Sickle

Columbus, Ohio, Oct. 16 – Pacific Life Insurance Co. and Pacific LifeCorp announced the early results of their tender offers for up to $500 million of five note series.

The offer opened on Oct. 3, and the early deadline was 5 p.m. ET on Oct. 16.

By the early deadline, the following early tenders were received with the note series listed in order of acceptance priority:

• $236,447,000, or 38.1%, of Pacific Life’s $621,002,000 9.25% surplus notes due 2039, with pricing to be set using the 3% U.S. Treasury note due May 15, 2047 plus 145 basis points;

• $16,451,000, or 11%, of Pacific Life’s $150 million 7.9% surplus notes due 2023, with pricing to be set using the 1.875% Treasury note due Sept. 30, 2022 plus 145 bps;

• $13.55 million, or 2.3%,of Pacific LifeCorp’s $600 million 6.6% senior notes due 2033, with pricing to be set using the 3% Treasury note due May 15, 2047 plus 115 bps;

• $89.51 million, or 17.9%, of Pacific LifeCorp’s $500 million 5.125% senior notes due 2043, with pricing to be set using the 3% Treasury note due May 15, 2047 plus 135 bps; and

• $217,289,000, or 48.3%, of Pacific LifeCorp’s $450 million 6% senior notes due 2020, with pricing to be set using the 1.375% Treasury note due Feb. 15, 2020 plus 37.5 bps.

The total purchase price will include an early tender payment of $50 per $1,000 principal amount of notes tendered by the early deadline.

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

Tendered notes could be withdrawn before the early deadline.

Because the tender cap was reached by the early deadline, the company said it does not expect to accept any additional tenders through the offer’s expiration at 11:59 p.m. ET on Oct. 30.

The company said it reserves the right to increase the tender cap, however. It said it will accept tendered notes from some series on a pro rata basis.

Pricing in the offer will be set at 2 p.m. ET on Oct. 17.

The offer is subject to the satisfaction or waiver of some conditions, including a financing condition.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and Goldman Sachs & Co. LLC (800 828-3182 or 212 902-6595) are the dealer managers. Global Bondholder Services (866 470-4300) is the depositary and information agent.

Pacific Life is an insurance company based in Newport Beach, Calif.

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