Liberty Mutual tenders for series A junior subordinated notes

By Marisa Wong

Morgantown, W.Va., May 9 – Liberty Mutual Group Inc. said it has begun a cash tender offer to purchase any and all of its $700 million outstanding series A junior subordinated notes due March 15, 2037.

The offer will expire at 11:59 p.m. ET on June 6.

Holders tendering their notes at or prior to the early tender time at 5 p.m. ET on May 22 will be eligible to receive an early tender payment as part of their tender offer consideration. The full tender consideration is $1,240 per $1,000 principal amount and includes an early tender payment of $50.

Holders tendering after the early tender time will receive the late tender offer consideration of $1,190 per $1,000 principal amount.

In addition, holders will receive accrued interest to but excluding the applicable settlement date.

Liberty Mutual said it may, but is not obligated to, elect to have an early settlement for notes tendered by the early tender time. Early settlement would be on June 4.

The final settlement date is expected to be June 7.

Tenders may be withdrawn at any time on or prior to 5 p.m. ET on May 22.

The tender offer is subject to a financing condition.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-8553) are lead dealer managers for the offer, with HSBC Securities (USA) Inc. as co-dealer manager.

Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or contact@gbsc-usa.com) is tender agent and information agent.

Liberty Mutual is a Boston-based property and casualty insurance company.

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