A.M. Best Assigns Debt Ratings to CNO Financial Group, Inc.’s Senior Unsecured Notes
May 15 2015 - 9:32AM
Business Wire
A.M. Best has assigned debt ratings of “bb+” to the $325
million 4.50% senior unsecured notes due 2020 and $500 million
5.25% senior unsecured notes due 2025 recently issued by CNO
Financial Group, Inc. (CNO Financial) (Carmel, IN) [NYSE: CNO].
The outlook assigned to all ratings is positive. CNO Financial’s
existing issuer credit and debt ratings are unchanged.
The new issues are part of a recapitalization plan that includes
a new $150 million senior unsecured revolver, $100 million of which
will be drawn at closing. The company plans to use the roughly $925
million in proceeds to repay all of its outstanding borrowings,
including fees and expenses, under its existing senior secured
credit facility in addition to its outstanding 6.375% senior
secured notes due in 2020. Any remaining proceeds will be used for
general corporate purposes, which could include share
repurchases.
A.M. Best anticipates that CNO Financial’s adjusted financial
leverage ratio will increase to approximately 19% as a net result
of the recapitalization plan. Despite the modest increase in
leverage, A.M. Best notes that the company’s financial leverage and
interest coverage ratios remain well within A.M. Best’s guidelines
for its current ratings.
CNO Financial and its subsidiaries provide interest-sensitive
life insurance, traditional life insurance, fixed annuities,
Medicare supplement insurance, long-term care insurance and other
supplemental health products to middle-income pre-retiree and
retired people within the United States.
The methodology used in determining these ratings is Best’s
Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Best’s
Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Insurance Holding Company and Debt
Ratings
- Analyzing Insurance Holding Company
Liquidity
This press release relates to rating(s) that have been
published on A.M. Best's website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please visit A.M.
Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
A.M. BestTom Zitelli, 908-439-2200, ext.
5412Senior Financial
Analysttom.zitelli@ambest.comorTom Rosendale, 908-439-2200,
ext. 5201Assistant Vice
Presidentthomas.rosendale@ambest.comorChristopher Sharkey,
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
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