Allstate Life Global Funding Trust wraps any and all tender offer

By Jennifer Chiou

New York, June 5 - Allstate Life Insurance Co., as sponsor of the Allstate Life Global Funding medium-term note program, announced the completion of part of the cash tender offers for up to $1.6 billion of notes issued by Allstate Life Global Funding Trust.

Allstate Life is a subsidiary of Allstate Corp.

As already reported, the trust is tendering for a total of seven series of notes, three of which fall under tenders for any and all of the securities and the remaining four of which are subject to a maximum.

The any and all offers expired at 5 p.m. ET on June 4. Under that offer, the company tendered for any and all of its $498,775,000 of 4.25% notes due 2010, $678 million of floating-rate notes due May 21, 2010 and $395 million of floating-rate notes due June 25, 2010.

The company said it obtained tenders for $174,887,000, or 35.06%, of the 4.25% notes, $553,634,000, or 81.66%, of the floaters due May 2010 and $216.8 million, or 54.89%, of the floaters due June 2010.

For each $1,000 principal amount, Allstate will pay $1,020 for the 4.25% notes, par for the floaters due May 2010 and $988.75 for the floaters due June 2010.

Allstate will also pay accrued interest.

Remaining offer

The maximum principal amount to be accepted in the remaining tenders depends on how many notes are accepted in the any and all offers. The figure will be the difference of the $1.6 billion cap and the tenders received in the above offer.

In priority acceptance order for the maximum tender offers, Allstate is tendering for its $400 million of floating-rate notes due April 30, 2010, and its $250 million each of floating-rate notes due Feb. 26, 2010, floating-rate notes due Jan. 25, 2010 and floating-rate notes due Sept. 22, 2009.

For each $1,000 principal amount, Allstate will pay $991.25 for the floaters due April 2010, par for the floaters due February 2010, $996 for the floaters due January 2010 and par for the floaters due 2009. Those payouts include a $30.00 early payment for those who tender by 5 p.m. ET on June 10.

The maximum tender offers will expire at midnight ET on June 24.

Allstate will also pay accrued interest.

Tenders in the any and all offers had to be withdrawn before 5 p.m. ET on June 4 while tenders in the maximum tender offers made prior to 5 p.m. ET on June 10 may be validly withdrawn prior to that time. Tenders made after that time in the maximum offers may not be withdrawn.

Banc of America Securities LLC (888 292-0070 or call collect 980 388-4603) and J.P. Morgan Securities Inc. (866 834-4666 or call collect 212 834-3424) are the dealer managers. Global Bondholder Services Corp. is the information agent (866 952-2200 or call collect 212 430-3774).

Based in Northbrook, Ill., Allstate's subsidiaries are personal property and casualty insurers.

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