Progressive solicits consents for 6.25% notes, tenders for 6.7% junior subordinated debentures

By Jennifer Chiou

New York, June 10 - Progressive Corp. announced the start of a consent solicitation for its 6.25% senior notes due 2032 to terminate the replacement capital covenant for the notes.

The company also launched a tender offer for up to $350 million of its $1 billion of 6.7% fixed-to-floating-rate junior subordinated debentures due 2067.

The replacement capital covenant for the 6.25% notes was granted to holders by Progressive in June 2007 in connection with Progressive's issue of the 6.7% debentures.

The company is seeking consents from holders of a majority of the notes. Those who deliver consents will receive a consent fee of $5 for each $1,000 principal amount of notes.

The solicitation will end at 5 p.m. ET on June 23.

Those who tender their 6.7% debentures by that time will get a total consideration of $950 per $1,000 principal amount of debentures, including a $50 early tender payment.

Those who tender after that time but prior to the expiration date of 11:59 p.m. ET on July 8 will not receive the early tender payment.

The solicitation is a condition of the tender offer. There is, however, no minimum tender threshold.

Deutsche Bank Securities Inc. is the solicitation agent and dealer manager (866 627-0391 or call collect 212 250-2955). Global Bondholder Services Corp. is the information agent (866 387-1500).

Progressive is a Mayfield Village, Ohio-based holding company. The Progressive Group of Insurance Cos. is an auto insurance group and seller of motorcycle and personal watercraft policies.

© 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.