Voya to pay up to $800 million in tender offer for five note series

By Susanna Moon

Chicago, June 6 – Voya Financial, Inc. said it began a cash tender offer for up to $800 million purchase price of five series of notes and debentures issued by Voya and its subsidiary Voya Holdings, Inc.

Pricing will be set for each $1,000 principal amount using a reference security plus a fixed spread, with the notes listed in order of acceptance priority as follows:

• Voya Holdings’ $103 million 6.97% debentures due Aug. 15, 2036 using the 2.5% U.S. Treasury bonds due Feb. 15, 2046 plus a spread of 175 basis points for a hypothetical total purchase price of $1,359.72;

• Voya Holdings’ $204 million 7.625% debentures due Aug. 15, 2026 using the 1.625% U.S. Treasury bonds due May 15, 2026 plus 160 bps for a hypothetical total purchase price of $1,368.82;

• Voya Holdings’ $163 million 7.25% debentures due Aug. 15, 2023 using the 1.625% U.S. Treasury bonds due May 15, 2026 plus 130 bps for a hypothetical total purchase price of $1,270.53;

• Voya’s $850 million 5.5% senior notes due July 15, 2022 using the 1.375% U.S. Treasury bonds due May 31, 2021 plus 155 bps for a hypothetical total purchase price of $1,150.33; and

• Voya’s $1 billion 2.9% senior notes due Feb. 15, 2018 using the 1% U.S. Treasury notes due Feb. 15, 2018 plus 35 bps for a hypothetical total purchase price of $1,028.96.

The first three notes are guaranteed by ING Groep NV. The last two series are guaranteed by Voya Holdings.

The total payment includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 17, the early participation date.

Holders also will also receive accrued interest.

Pricing for the hypothetical total purchase price was set using the reference yield at 11 a.m. ET on June 3, with an early settlement date of June 20.

The tender offer will end at 11:59 p.m. ET on July 1.

The final settlement date is expected to occur on July 6.

Voya reserves the right to increase the tender cap, according to a company announcement.

The offer is subject to a financing condition.

Barclays (800 438-3242 or 212 528-7581), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and Deutsche Bank Securities Inc. (866 627-0391 (toll-free) or 212 250-2955) are the dealer managers. D. F. King & Co., Inc. (212 269-5550, 866 207-2324 or voya@dfking.com) is the information agent and tender agent.

Voya is a financial, retirement, investment and insurance company based in New York.

© 2015 Prospect News.
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