Pacific Life marks early tenders for $322.79 million of 9.25% notes

By Jennifer Chiou

New York, Jan. 16 - Pacific Life Insurance Co. said it received early tenders from holders of $322,793,000 of its $1 billion of 9.25% surplus notes due June 15, 2039 in the modified Dutch auction cash tender offer for up to $250 million principal amount of the notes.

The early deadline passed at 5 p.m. ET on Jan. 15.

As reported, the purchase price will be set using the yield to maturity of the 2.75% U.S. Treasury notes due Aug. 15, 2042 plus a spread of 270 basis points to 305 bps.

The total payment includes a $50.00 early tender premium for each $1,000 principal amount of notes tendered by the early tender date.

The company also will pay accrued interest to but excluding the settlement date.

The tender offer will end at 11:59 p.m. ET on Jan. 30.

Under the modified Dutch auction, holders must specify the maximum spread in excess of the reference yield they would be willing to accept as the basis for determining the full tender offer payment in exchange for each $1,000 principal amount. The bid spread must be in increments of 2.5 bps within the range of 270 bps to 305 bps.

Holders who tendered their notes by the early tender date must specify a bid spread. Those tendering after the early deadline will be deemed to have specified the maximum spread as their bid spread.

Calculation of the clearing spread is subject to the price cap; the full tender offer payment is not to exceed $1,500 per $1,000 principal amount.

Those who tender their notes after the early deadline will receive the total payment less the early tender premium.

Tendered notes may be withdrawn by the early offer deadline.

Notes may be purchase on a prorated basis if the amount of tenders exceeds the offer cap.

The offer is subject to a financing condition and a minimum tender condition.

Goldman Sachs & Co. (800 828-3182 or collect 212 902-5183), Barclays (800 438-3242 or collect 212 528-7581) and Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-2147) are the dealer managers. Global Bondholder Services (866 795-2200) is the depositary and information agent.

The insurance company is based in Newport Beach, Calif.

© 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.