CNO Financial sets talk in $800 million two-part notes offering; pricing expected Thursday

By Paul A. Harris

Portland, Ore., May 14 – CNO Financial Group set price talk in its $800 million two-part bullet notes offering (Ba1/BB+/BB+), according to an informed source.

The deal features non-callable five-year senior notes talked to yield in the 4 5/8% area and 10-year senior notes, which feature a par call three months prior to maturity but are otherwise non-callable, talked to yield in the 5 3/8% area.

Price talk comes on top of earlier guidance that had the 10-year notes yielding 5¼% to 5½% and the five-year notes coming 75 basis points inside of the 10-year notes.

Tranche sizes remain to be determined.

Books close at 1:30 p.m. ET on Thursday, and the deal is also set to price Thursday.

Goldman Sachs & Co. is the left bookrunner for the public offering. RBC Capital Markets is the joint bookrunner.

Barclays, KeyBanc Capital Markets and Morgan Stanley & Co. LLC are the co-managers.

The Carmel, Ind.-based financial services company plans to use the proceeds, together with proceeds from a new revolver, to repay its existing credit agreement and senior secured notes in full, with any remaining proceeds to be used for general corporate purposes, including share repurchases.

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