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Liberty Mutual begins tender offer for 7.5% notes, solicits consents
By Angela McDaniels
Tacoma, Wash., March 21 - Liberty Mutual Group Inc. began a tender offer and a consent solicitation for its $439.55 million of 7.5% senior notes due 2036, according to a company news release.
The company is soliciting consents to terminate the replacement capital covenant that it executed in favor of the 7.5% noteholders in connection with its 10.75% series C junior subordinated notes. Consents are needed from the holders of a majority of the 7.5% notes in order to terminate the covenant.
The consent solicitation will expire at 5 p.m. ET on April 1, and the tender offer will expire at midnight ET on April 15.
Holders may tender their 7.5% notes or separately deliver their consents without tendering their notes. Holders who tender their notes by the consent solicitation expiration will be deemed to have delivered consents.
The consent fee is $20 for each $1,000 principal amount of notes.
Holders who tender will receive $1,070 for each $1,000 principal amount of notes. This amount includes a premium of $50 for each note tendered by 5 p.m. ET on April 1, the early tender time. No consent fee will be paid for tendered notes.
The company will also pay accrued interest up to but excluding the settlement date for tendered notes.
The payment of the purchase price and the consent fee are conditioned on the receipt of the required consents, the termination of the replacement capital covenant and the satisfaction of a financing condition.
Merrill Lynch (888 292-0070 or 980 683-3215) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) are the dealer managers and solicitation agents. Global Bondholder Services Corp. (866 873-5600) is the depositary and information agent.
Liberty Mutual is an insurance company based in Boston.
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