Aflac Incorporated Prices $400 Million of 30-Year Senior Notes
December 14 2009 - 5:45PM
PR Newswire (US)
COLUMBUS, Ga., Dec. 14 /PRNewswire-FirstCall/ -- Aflac Incorporated
announced today that it has priced $400 million (par value) of
thirty-year senior notes with a coupon of 6.9%. The notes will be
issued at a price of 98.951 to yield 6.984%. The company
anticipates using the proceeds from this issuance for debt
repayment and general corporate purposes. Commenting on the pricing
of the debt issue, Aflac Incorporated President and Chief Financial
Officer Kriss Cloninger III commented: "This debt issuance further
strengthens our liquidity position and facilitates our repayment of
approximately 40 billion yen, or about $450 million at the current
yen/dollar exchange rate, of Samurai notes that mature in July
2010." ABOUT AFLAC For more than 50 years, Aflac products have
given policyholders the opportunity to direct cash where it is
needed most when a life-interrupting medical event causes financial
challenges. As the number one provider of guaranteed-renewable
insurance in the United States and the number one insurance company
in terms of individual insurance policies in force in Japan, Aflac
insurance products provide protection to more than 40 million
people worldwide. Aflac has been recognized by Ethisphere magazine
as one of the World's Most Ethical Companies for three consecutive
years and was also named by the Reputation Institute as the Most
Reputable Company in the Global Insurance Industry for two
consecutive years. In 2009 Fortune magazine recognized Aflac as one
of the 100 Best Companies to Work For in America for the eleventh
consecutive year. Fortune magazine also ranked Aflac No. 1 on its
global list of the Most Admired Companies in the Life and Health
Insurance category. Aflac appears on Hispanic Enterprise magazine's
list of the 50 Best Companies for Supplier Diversity and on Black
Enterprise magazine's list of the 40 Best Companies for Diversity.
Aflac was also named by Forbes magazine as America's Best-Managed
Company in the Insurance category. Aflac Incorporated is a Fortune
500 company listed on the New York Stock Exchange under the symbol
AFL. The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" to encourage companies to provide prospective
information, so long as those informational statements are
identified as forward-looking and are accompanied by meaningful
cautionary statements identifying important factors that could
cause actual results to differ materially from those included in
the forward-looking statements. We desire to take advantage of
these provisions. This document contains cautionary statements
identifying important factors that could cause actual results to
differ materially from those projected herein, and in any other
statements made by company officials in communications with the
financial community and contained in documents filed with the
Securities and Exchange Commission (SEC). Forward-looking
statements are not based on historical information and relate to
future operations, strategies, financial results or other
developments. Furthermore, forward-looking information is subject
to numerous assumptions, risks and uncertainties. In particular,
statements containing words such as "expect," "anticipate,"
"believe," "goal," "objective," "may," "should," "estimate,"
"intends," "projects," "will," "assumes," "potential," "target" or
similar words as well as specific projections of future results,
generally qualify as forward-looking. Aflac undertakes no
obligation to update such forward-looking statements. We caution
readers that the following factors, in addition to other factors
mentioned from time to time, could cause actual results to differ
materially from those contemplated by the forward-looking
statements: difficult conditions in global capital markets and the
economy generally; governmental actions for the purpose of
stabilizing the financial markets; defaults and downgrades in
certain securities in our investment portfolio; impairment of
financial institutions; credit and other risks associated with
Aflac's investment in perpetual securities; differing judgments
applied to investment valuations; subjective determinations of
amount of impairments taken on our investments; realization of
unrealized losses; limited availability of acceptable
yen-denominated investments; concentration of our investments in
any particular sector; concentration of business in Japan; ongoing
changes in our industry; exposure to significant financial and
capital markets risk; fluctuations in foreign currency exchange
rates; significant changes in investment yield rates; deviations in
actual experience from pricing and reserving assumptions;
subsidiaries' ability to pay dividends to the Parent Company;
changes in regulation by governmental authorities; ability to
attract and retain qualified sales associates and employees;
ability to continue to develop and implement improvements in
information technology systems; changes in U.S. and/or Japanese
accounting standards; decreases in our financial strength or debt
ratings; level and outcome of litigation; ability to effectively
manage key executive succession; catastrophic events; and failure
of internal controls or corporate governance policies and
procedures. Goldman, Sachs & Co. and J.P. Morgan Securities
Inc. are acting as joint bookrunning managers for this offering,
which is expected to close on December 17, 2009. Interested parties
may obtain a written prospectus relating to the senior notes
offering from Goldman, Sachs & Co., 85 Broad Street, New York,
NY 10004, Attention: Prospectus Department, toll-free at
1-866-471-2526 or J.P. Morgan Securities Inc., 270 Park Avenue, New
York, New York 10017, Attn: High Grade Syndicate Desk, 8th Floor,
collect at 1-212-834-4533. Analyst and investor contact - Kenneth
S. Janke Jr., 800.235.2667 - option 3, FAX: 706.324.6330, or Media
contact - Laura Kane, 706.596.3493, FAX: 706.320.2288, or (Logo:
http://www.newscom.com/cgi-bin/prnh/20090422/CL03654LOGO )
http://www.newscom.com/cgi-bin/prnh/20090422/CL03654LOGODATASOURCE:
Aflac Incorporated CONTACT: Analyst and investor contact - Kenneth
S. Janke Jr., 800-235-2667 - option 3, FAX: +1-706-324-6330, or ,
or Media contact - Laura Kane, +1-706-596-3493, FAX:
+1-706-320-2288, or Web Site: http://www.aflac.com/
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