Allstate intends to price fixed-to-floating debentures due 2053

By Stephanie N. Rotondo

Phoenix, Aug. 5 - The Allstate Corp. is planning an offering of series B fixed-to-floating rate subordinated debentures due 2053, the company said in a prospectus filed with the Securities and Exchange Commission on Monday.

J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc. and Goldman Sachs & Co. are the joint bookrunners.

The coupon will be fixed through 2023 and will be payable semiannually. Beginning in 2023, the rate begins to float at Libor plus a spread.

Once floating, interest will be payable quarterly.

Prior to 2023, the company can redeem the notes in whole, but not in part, within 90 days of a rating agency event, at par or, if greater, a make-whole amount, plus any accrued and unpaid interest. Allstate can also call the issue within 90 days of a tax event prior to 2023. In that instance, the call price would be par plus accrued and unpaid interest.

Additionally, the notes become redeemable on or after 2023 in whole or in part, at par plus accrued and unpaid interest.

The debt will not be listed.

Proceeds will be used to fund repayment of commercial paper borrowings via recent tender offers, to fund the repayment of 2014 debt, to repurchase common stock in the open market from time to time and for general corporate purposes.

Allstate is a Northbrook, Ill.-based insurance company.

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