S&P gives Unum notes BBB

S&P said it assigned a BBB rating to Unum Group’s proposed five-year senior unsecured notes.

The notes will also be structurally subordinated to any other liabilities and debt of the company's insurance operating subsidiaries, the agency said.

Unum has an upcoming maturity of $400 million of 5.625% senior notes in September.

The company pre-funded this maturity with a senior note offering last year and has about $1 billion in cash at the holding company level as of March 31, S&P said.

“We expect the company to use the proceeds of these new notes for general corporate purposes and to support liquidity at the group. We also expect Unum to have financial leverage of 30%-32% and EBITDA fixed-charge coverage of 8x-9x throughout 2020-2021,” S&P said in a press release.

The note offering does not affect Unum’s BBB long-term issuer credit rating, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.