By Andrea Heisinger
Omaha, May 21 - Liberty Mutual Group Inc. priced $1.25 billion 10.75% 80-year hybrid junior subordinated notes (Baa3/BB+/BBB-) on Wednesday, market sources said.
The split-rated issue priced via Rule 144A and Regulation S.
The coupon is a fixed rate of 10.75% until 2038, then a floating rate of three-month Libor plus 712 basis points.
The notes have a price of 97.805 to yield 11% and are callable on or after June 15, 2038.
They have a scheduled maturity of 2058 and final maturity of 2088.
Banc of America Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. were bookrunners.
Co-managers were Lehman Brothers Inc., Morgan Stanley & Co., Inc., RBS Greenwich Capital and Wachovia Capital Markets.
The insurance company is based in Boston.
| Issuer: | Liberty Mutual Group Inc.
|
| Issue: | Hybrid junior subordinated notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 15, 2058 (scheduled), June 15, 2088 (final)
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Lehman Brothers Inc., Morgan Stanley & Co., Inc., RBS Greenwich Capital, Wachovia Capital Markets
|
| Coupon: | 10.75% until June 15, 2038, then three-month Libor plus 712 bps
|
| Price: | 97.805
|
| Yield: | 11%
|
| Call: | On or after June 15, 2038
|
| Distribution: | Rule 144A/Regulation S
|
| Trade date: | May 21
|
| Settlement date: | May 29
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
© 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.
