By Stephanie N. Rotondo
Phoenix, Feb. 20 - Kemper Corp. sold $150 million of 7 3/8% $25-par subordinated debentures due Feb. 27, 2054 (Expected ratings: Ba1/BB), according to a market source on Thursday.
The deal was upsized from $100 million and priced at the tight end of talk.
J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable quarterly, but those payments can be deferred for up to five consecutive years.
The notes will become redeemable on or after Feb. 27, 2019 at par plus accrued interest. The company can also redeem the debentures in whole within 90 days of a rating agency or tax event.
The Chicago-based insurance company will apply to list the notes on the New York Stock Exchange.
Proceeds will be used for working capital and general corporate purposes, which may include retiring a portion of debt on or before its maturity.
| Issuer: | Kemper Corp.
|
| Securities: | Subordinated debentures
|
| Amount: | $150 million
|
| Maturity: | Feb. 27, 2054
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 7 3/8%
|
| Price: | Par of $25
|
| Yield: | 7 3/8%
|
| Talk: | 7 3/8% to 7½%
|
| Call option: | On or after Feb. 27, 2019 at par plus accrued interest or within 90 days of a tax or rating agency event
|
| Pricing date: | Feb. 20
|
| Settlement date: | Feb. 27
|
| Expected ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Cusip: | 488401209
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
