Published on 6/12/2017 in the Prospect News Investment Grade Daily.
New Issue: Kemper prices $200 million tap of 4.35% notes due 2025 at 195 bps over Treasuries
By Cristal Cody
Tupelo, Miss., June 12 – Kemper Corp. priced a $200 million reopening of its 4.35% senior notes due Feb. 15, 2025 (Baa3/BBB-/BBB-) on Monday at 101.193 with a yield to worst of 4.161%, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance at a spread of Treasuries plus 195 basis points.
Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.
The company originally sold $250 million of the notes on Feb. 19, 2015 at 99.937 to yield 4.359% and a spread of 225 bps over Treasuries. The total outstanding now is $450 million.
Proceeds from the reopening are expected to be used for general corporate purposes.
Kemper is a diversified insurance holding company based in Chicago.
| Issuer: | Kemper Corp.
|
| Amount: | $200 million reopening
|
| Description: | Senior notes
|
| Maturity: | Feb. 15, 2025
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Co-managers: | Fifth Third Securities, Inc., PNC Capital Markets LLC, Samuel A. Ramirez & Co., Inc., Sandler O’Neill & Partners, LP and Williams Capital Group, LP
|
| Coupon: | 4.35%
|
| Price: | 101.193
|
| Yield: | 4.161%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 35 bps before Nov. 15, 2024 and then callable at par
|
| Trade date: | June 12
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 200 bps area, plus or minus 5 bps
|
| Total outstanding: | $450 million, including $250 million priced on Feb. 19, 2015 at 225 bps spread
|
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