Liberty Mutual starts 10.75% notes tender, 7.5% notes consent bid

By Jennifer Chiou

New York, Jan. 14 - Liberty Mutual Group Inc. announced the launch of a cash tender offer for its $1.25 billion of 10.75% series C junior subordinated notes due June 15, 2088 as well as a consent solicitation for its 7.5% senior notes due 2036 to terminate the replacement capital covenants.

The consent deadline is 5 p.m. ET on Jan. 26.

For each $1,000 principal amount, Liberty said it will pay $1,272.50 for tendered 10.75% notes, including a $50.00 early payment for those who tender prior to 5 p.m. ET on Jan. 24. It will pay a consent fee of $5.00 per $1,000 of notes in the solicitation.

The company is seeking consents from holders of a majority of the 7.5% notes.

Holders will also receive accrued interest for tendered notes.

The tender offer will wrap at midnight ET on Jan. 28.

Bank of America Merrill Lynch (888 292-0070 or call collect 980 388-8217) and J.P. Morgan Securities LLC (866 834-4666 or call collect 212 834-4811) are the dealer managers and solicitation agents.

Global Bondholder Services Corp. (866 795-2200) is the information agent.

Liberty Mutual is a subsidiary of Liberty Mutual Holding Co. Inc., a Boston-based property and casualty insurer.

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