By Stephanie N. Rotondo
Phoenix, Sept. 17 - Torchmark Corp. brought a $125 million sale of 5.875% $25-par 40-year junior subordinated debentures, according to a market source on Monday.
The deal came in line with talk.
Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunning managers.
The debt can be called in whole prior to Dec. 15, 2017 in the event of a tax event at $26. They can be called in whole or in part at any time on or after that date at par.
The company will apply to list the notes on the New York Stock Exchange under the ticker symbol "TMKPB."
Proceeds will be used, together with cash on hand, to redeem in whole or in part the $120 million outstanding of 7.1% trust originated preferred securities due 2046 issued by Torchmark Capital Trust III.
Torchmark is a McKinney, Texas-based insurance holding company.
| Issuer: | Torchmark Corp.
|
| Securities: | Junior subordinated debentures
|
| Amount: | $125 million
|
| Maturity: | Dec. 15, 2052
|
| Bookrunners: | Bank of America Merrill Lynch and Wells Fargo Securities LLC
|
| Coupon: | 5.875%, payable quarterly beginning Dec. 15
|
| Price: | Par of $25
|
| Yield: | 5.875%
|
| Call option | At par on or after Dec. 15, 2017 or before that at 104 in the case of a tax event
|
| Pricing date: | Sept. 17
|
| Expected listing: | NYSE: TMKPB
|
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