CNO Financial Group accepts tenders for 63.8% of 7% convertibles

By Jennifer Chiou

New York, March 28 - CNO Financial Group, Inc. announced total tenders for $59,286,000, or 63.8%, of its $92,996,000 of outstanding 7% convertible senior debentures due 2016.

The offer began on Feb. 11 and expired at midnight ET on March 27.

As previously announced, the company will pay $2,123.82 for each $1,000 principal amount of notes, resulting in a total purchase price of about $127.5 million, including accrued interest.

The purchase price is equal to the sum of (i) the average volume-weighted average price, $11.2393, multiplied by 183.5145 plus (ii) $61.25.

The average VWAP is the average of the daily VWAPs of the company's common stock over the 30 consecutive trading days beginning on Feb. 13.

The company previously said the purchase price will not be adjusted for any dividends declared or paid on its common stock during the offer.

The offer was not subject to any minimum tender condition.

Following settlement, $33.71 million principal amount of debentures will remain outstanding.

The offer was conducted as part of CNO's securities repurchase program. As of Feb. 8, CNO had about $350 million of repurchase capacity left under the program.

The dealer manager was Goldman Sachs & Co. (800 828-3182 or 212 902-5183). The depositary and information agent was Global Bondholder Services Corp. (866 794-2200 or 212 430-3774).

CNO is a holding company for insurance subsidiaries that include Bankers Life and Casualty Co., Washington National Insurance Co. and Colonial Penn Life Insurance Co. It is based in Carmel, Ind.

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