Principal accepts $93.81 million 6.05% notes in tender, sets pricing

By Wendy Van Sickle

Columbus, Ohio, Nov. 17 – Principal Financial Group, Inc. said it received valid tenders for $93,808,000 of its 6.05% senior notes due 2036 by the early deadline.

The issuer said it would accept all valid tenders for purchase.

Principal also announced pricing and said that it would now make the early tender payment to all holders who tender, regardless of whether they submit their notes for purchase before or after the early tender deadline.

As announced on Nov. 3, Principal is tendering for up to $150 million of the $600 million of 6.05% notes.

For each $1,000 principal amount of notes, the company will pay a total consideration of $1,208.01, according to a press release.

Pricing was set at 2 p.m. ET on Nov. 17 using the 2.5% Treasury note due May 15, 2046 plus 145 basis points.

The total consideration includes a $50 early tender payment which was originally only on offer for notes tendered by 5 p.m. ET on Nov. 17, the early tender date, but will now be included in the payment to all those that tender.

The offer runs through midnight ET on Dec. 2.

Holders will also receive accrued interest up to but excluding the settlement date, Nov. 18 for the early tenders and Dec. 5 for any notes tendered after the early deadline.

The offer began on Nov. 3, along with any-and-all offers for the company’s $300 million 1.85% senior notes due 2017 and its $350 million of 8.875% senior notes due 2019. Those offers ended on Nov. 9.

As previously reported, under the any-and-all offers the company received tenders of $232,776,000 of its notes due 2017 and $228,905,000 of its notes due 2019. The company paid $1,008.86 per $1,000 for the 2017 notes and $1,180.73 for the 2019 notes.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147), Barclays (800 438-3242 or 212 528-7851) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) are the dealer managers. D.F. King & Co., Inc. (800 659-6590 or 212 269-5550) is the tender and information agent.

The issuer is a retirement savings, investment and insurance products company based in Des Moines.

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