Travelers gets needed consents to amend 6.75% notes, extends offers

By Susanna Moon

Chicago, Nov. 5 - Travelers Cos., Inc. said holders delivered consents for a majority of its 6.75% senior notes due 2036 by 5 p.m. ET on Nov. 5 in the consent solicitation, which has been extended until 5 p.m. ET on Nov. 12.

The company began an offer on Oct. 27 to purchase for cash its $1 billion of outstanding 6.25% fixed- to floating-rate junior subordinated debentures due 2067 at $1,050 per $1,000 principal amount plus accrued interest.

Travelers previously noted that, in order to tender for the 6.25% notes, the company needed consents from holders of its 6.75% notes because the terms of these notes prohibit the company from repaying, redeeming or repurchasing the notes before March 15, 2047 unless it sells stock or other equity to do so.

In consideration for the consents, Travelers will pay $10 for each $1,000 principal amount of the 6.75% notes. It originally offered to pay $5 in cash per note.

Holders will receive payment for the tendered notes on Nov. 8.

The termination of the replacement capital covenant requires the consent of a majority of the holders of the covered debt and is a condition to the tender offer.

Travelers said it also extended the tender offer for the 6.25% notes, which will now run until 5 p.m. ET on Nov. 8.

As of 5 p.m. ET on Nov. 5, holders had tendered $660,933,000 principal amount of the 6.25% notes

Bank of America Merrill Lynch (866 292-0070 or collect 980 683-3215) is the solicitation agent for the consent solicitation and the dealer manager for the tender offer. Global Bondholder Services Corp. (866 857-2200) is the information agent.

The tender offer also will end at 5 p.m. ET on Nov. 5.

Travelers is a holding company for insurance subsidiaries and is based in New York.

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