By a News Reporter-Staff News Editor at Insurance Weekly News -- Torchmark Corporation (NYSE: TMK) announced that it has priced an offering of $550 million in aggregate principal amount of its 4.550% Senior Notes due 2028 (the "Notes") that will mature on September 15, 2028. The Notes are redeemable, in whole or in part, at Torchmark's option subject to certain conditions. Torchmark expects the offering of the Notes to close on September 27, 2018, subject to the satisfaction of customary closing conditions.
The Notes will pay interest semi-annually and will be Torchmark's general unsecured senior obligations. The Notes will effectively rank junior to Torchmark's secured indebtedness, if any, to the extent of the collateral securing such indebtedness and will be structurally subordinated to all liabilities of the Company's subsidiaries.
Torchmark intends to use the net proceeds from the sale of the Notes to (i) along with cash on hand, redeem the $293 million outstanding principal amount on its 9.25% Senior Notes due 2019 (the "2019 Notes"), including the payment of an approximately $11 million "make-whole" premium plus accrued and unpaid interest to, but excluding, the date of redemption, and (ii) fund $150 million of additional capital to its insurance subsidiaries. Torchmark intends to use any remaining net proceeds for general corporate purposes, which may include additional holding company liquidity and the repayment of a portion of its outstanding commercial paper. This press release does not constitute a notice of redemption with respect to, or an offer to repurchase, the 2019 Notes.
BofA Merrill Lynch, US Bancorp and Wells Fargo Securities are acting as joint book-running managers for the offering.
Torchmark has filed an effective registration statement (including a preliminary prospectus supplement and accompanying prospectus) with the Securities and Exchange Commission ("SEC") for the offering to which this communication relates. Before you invest, you should read the preliminary prospectus supplement and the accompanying prospectus in that registration statement and other documents Torchmark has filed with the SEC for more complete information about Torchmark and this offering. You may get these documents for free by visiting EDGAR on the SEC's website at ww.sec.gov. Alternatively, Torchmark, any underwriter or any dealer participating in the offering will arrange to send you copies of the preliminary prospectus supplement and accompanying prospectus, and, when available, the final prospectus supplement relating to the offering if you request it by contacting Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-294-1322, U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.
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