Allstate gets tenders for $447.7 million notes so far in capped offers

By Angela McDaniels

Tacoma, Wash., June 11 - Allstate Life Insurance Co., as sponsor of the Allstate Life Global Funding Trusts medium-term note program, announced the early results of the tender offers for four series of the trusts' secured MTNs.

Allstate Life is a subsidiary of Allstate Corp.

As previously reported, Allstate Life is tendering for up to $1.6 billion of seven series of notes in two sets of offers. The company offered to purchase any and all of three series of notes in the first set of offers, which ended June 4, and up to a maximum amount of four series of notes in the second set of offers.

The maximum principal amount to be accepted in the second set of offers will be $654,679,000. This is the difference between the $1.6 billion cap and the principal amount of notes tendered in the first set of offers, which was $945,321,000.

In priority acceptance order for the second set of offers, Allstate Life is tendering for the $400 million of floating-rate notes due April 30, 2010 of Allstate Life Global Funding Trust 2007-5, the $250 million of floating-rate notes due Feb. 26, 2010 of Trust 2008-1, the $250 million floating-rate notes due Jan. 25, 2010 of Trust 2007-2 and the $250 million floating-rate notes due Sept. 22, 2009 of Trust 2004-5.

As of 5 p.m. ET on June 10, holders had tendered $447,719,000 of notes in the second set of offers. This includes $202,428,000, or 50.61%, of the floaters due April 2010, $186,575,009, or 74.63%, of the floaters due February 2010; and $58,716,000, or 23.49%, of the floaters due 2009.

No tenders had been received for the floaters due January 2010.

For each $1,000 principal amount, Allstate Life will pay $991.25 for the floaters due April 2010, par for the floaters due February 2010, $996.00 for the floaters due January 2010 and par for the floaters due 2009. Those payouts include a $30.00 early payment for those who tendered by 5 p.m. ET on June 10.

Allstate Life will also pay accrued interest.

These offers will expire at midnight ET on June 24.

Previous offers

Allstate Life announced on June 5 the results of the first set of offers, under which it tendered for any and all of Allstate Life Global Funding Trust 2005-4's $498,775,000 of 4.25% notes due 2010, Trust 2008-5's $678 million of floating-rate notes due May 21, 2010 and Trust 2007-7's $395 million of floating-rate notes due June 25, 2010.

The company said it received 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 Life paid $1,020 for the 4.25% notes, par for the floaters due May 2010 and $988.75 for the floaters due June 2010. Holders also received accrued interest.

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. (866 952-2200 or call collect 212 430-3774) is the information agent.

Allstate is based in Northbrook, Ill. Its subsidiaries are personal property and casualty insurers.

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