By Cristal Cody
Tupelo, Miss., Aug. 18 – Globe Life Inc. priced an upsized $350 million of 2.15% senior notes due Aug. 15, 2030 (Baa1/A/BBB+) on Tuesday at 99.822 to yield 2.17%, or a spread of Treasuries plus 150 basis points, according to a market source and an 424B5 filing with the Securities and Exchange Commission.
Price talk was at the 165 bps spread area.
The offering was upsized from $300 million.
BofA Securities Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC were the bookrunners.
The issuer plans to use proceeds to pay off the $150 million principal balance on its 364-day term loan. Remaining proceeds will be used for general corporate purposes, which may include capital investments in insurance subsidiaries, additional holding company liquidity and the repayment of a portion of the company’s outstanding commercial paper.
Globe Life is an insurance holding company based in McKinney, Tex. The company changed its name from Torchmark Corp. on Aug. 8, 2019.
| Issuer: | Globe Life Inc.
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| Amount: | $350 million
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| Description: | Senior notes
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| Maturity: | Aug. 15, 2030
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| Bookrunners: | BofA Securities Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC
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| Co-managers: | Regions Securities LLC, BBVA Securities Inc., Truist Securities, Inc., KeyBanc Capital Markets Inc., Comerica Securities, Inc. and Siebert Williams Shank & Co., LLC
|
| Coupon: | 2.15%
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| Price: | 99.822
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| Yield: | 2.17%
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| Spread: | Treasuries plus 150 bps
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| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before May 15, 2030; par thereafter
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| Trade date: | Aug. 18
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| Settlement date: | Aug. 21
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| Ratings: | Moody’s: Baa1
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| S&P: A
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 165 bps area
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