Selective Insurance launches $25-par senior notes due 2043 talked around 5.875%

By Stephanie N. Rotondo

Phoenix, Feb. 5 - Selective Insurance Group Inc. intends to sell at least $100 million of $25-par senior notes due 2043 (Expected ratings: Baa2/BBB/BBB+), the company said in a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is around 5.875%, according to a trader.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the joint bookrunners.

The notes become redeemable in 2018 at par plus accrued interest.

The company will apply to list the notes on the New York Stock Exchange under the ticker symbol "SGZA."

Proceeds will be used to redeem all $100 million of 7.5% junior subordinated notes due 2066 at par plus accrued interest. Any remaining funds will be used for general corporate purposes, including capital contributions to insurance subsidiaries.

Selective Insurance is a Branchville, N.J.-based insurance company.

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