By Andrea Heisinger
New York, Sept. 17 - Torchmark Corp. sold $300 million of 3.8% 10-year senior notes to yield Treasuries plus 200 basis points, a market source said on Monday.
The bonds were priced at the tight end of talk in the 212.5 bps area, plus or minus 12.5 bps.
The notes (Baa1/A/) were sold at 99.705 to yield 3.836%. There is a make-whole call option at 30 bps over Treasuries.
Bookrunners were Bank of America Merrill Lynch, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used to fund $200 million of the purchase price for the proposed acquisition of Family Heritage Life Insurance Co. of America, with the remainder used for general corporate purposes, including the repurchase or repayment of $94.1 million in outstanding 7.375% notes due 2013.
The insurance and financial services holding company is based in McKinney, Texas.
| Issuer: | Torchmark Corp.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Coupon: | 3.8%
|
| Price: | 99.705
|
| Yield: | 3.836%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | Sept. 17
|
| Settlement date: | Sept. 24
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A
|
| Price talk: | 212.5 bps area, plus or minus 12.5 bps
|
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