Unum completes tender for seven series of notes

By Jennifer Chiou

New York, Nov. 30 - Unum Group announced the end of the tender offers and consent solicitations for several series of notes.

All of the tender offers expired at midnight ET on Nov. 29.

Unum tendered for seven series of notes, including the $250 million of 7.405% capital securities due March 15, 2036; $325 million of 7 5/8% senior notes due March 1, 2011; $250 million of 7 3/8% senior debentures due June 15, 2032; $250 million of 6¾% senior notes due Dec. 15, 2028; $200 million of 7¼% senior notes due March 15, 2028; $200 million of 7% senior notes due July 15, 2018; and $150 million of 5.859% senior notes due May 15, 2009.

At the wrap of the offer, Unum said it received tenders from holders of $23.55 million of its 7.405% securities, $222.03 million of its 7 5/8% notes, $210.48 million of its 7 3/8% notes and $114.80 million of its 6¾% notes.

The company said it accepted for payment all tendered 7.405% securities, $99.86 million of 7 5/8% notes, all 7 3/8% notes, $66.05 million of 6¾% notes and none of the tendered 7¼% notes, 7% notes or 5.895% notes.

There was no maximum tender amount for the 7.405% capital securities. Unum accepted tenders for up to $400 million of the other securities, including no more than $100 million of the 7 5/8% notes.

Because more than that amount of securities was tendered, tenders for each series of notes were accepted in the order that the series are listed above.

The early tender deadline was 5 p.m. ET on Nov. 19, pushed back from Nov. 14.

At the early deadline, Unum said it had received tenders from holders of $23.49 million of its 7.405% securities, $221.98 million of its 7 5/8% notes, $209.98 million of its 7 3/8% notes, $114.4 million of its 6¾% notes, $139.38 million of its 7¼% notes, $93.31 million of its 7% notes and $99.07 million of its 5.895% notes.

For each $1,000 of securities tendered by the early deadline and accepted by Unum, the company previously said it will pay:

• $1,062.47 plus $15.43 in accrued interest for the 7.405% capital securities;

• $1,077.36 plus $18.85 in accrued interest for the 7 5/8% notes;

• $1,100.01 plus $33.80 in accrued interest for the 7 3/8% notes;

• $1,029.57 plus $30.94 in accrued interest for the 6¾% notes;

• $1,084.33 plus $15.10 in accrued interest for the 7¼% notes;

• $1,054.87 plus $26.25 in accrued interest for the 7% notes; and

• $1,015.11 plus $2.44 in accrued interest for the 5.859% notes.

Those payouts include an early tender payment of $30.00 per $1,000 principal amount of securities. Securities tendered after the early deadline will not receive the early tender payment.

Pricing was set at 2 p.m. ET on Nov. 14. Each payout was based on a fixed spread over the yield of a specific U.S. Treasury:

• For the 7.405% capital securities, 230 basis points over the yield of the 5% U.S. Treasury due 2037;

• For the 7 5/8% notes, 135 bps over the yield of the 4.5% U.S. Treasury due 2011;

• For the 7 3/8% debentures, 192 bps over the yield of the 5 3/8% U.S. Treasury due 2031;

• For the 6¾% notes, 185 bps over the yield of the 5¼% U.S. Treasury due 2028;

• For the 7¼% notes, 185 bps over the yield of the 6 1/8% U.S. Treasury due 2027;

• For the 7% notes, 190 bps over the yield of the 9 1/8% U.S. Treasury due 2018; and

• For the 5.859% notes, 120 bps over the yield of the 4 7/8% U.S. Treasury due 2009.

Morgan Stanley (212 761-5797 or 800 624-1808) was the dealer manager. D.F. King & Co (212 269-5550 or 888 869-7406) was the tender agent and information agent.

Based in Chattanooga, Tenn., Unum provides employee benefits products and services and disability income protection insurance.

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