NU Online News Service, May 2, 2003, 5:34 p.m. EDT – UnumProvident Corp., Chattanooga, Tenn., says it has succeeded at raising $1 billion by selling a combination of 45.98 million common shares for $10.875 per share and 20 million “mandatory units” for $25 per unit.

The mandatory units include a coupon that pays 8.25%. Purchasers can convert the units to common stock for $13.27 per unit.

UnumProvident will use the proceeds from the offering to pay off loans and increase the capitalization of its insurance subsidiaries, the company says.

The joint lead managers of the offering were Goldman, Sachs & Company, New York; Banc of America Securities L.L.C., a unit of Bank of America Corp., Charlotte, N.C.; and Morgan Stanley Inc., New York.

“We are pleased that both offerings were oversubscribed, and that the process was completed well within our expected time frame,” Tom Watjen, UnumProvident’s president, says in a statement about the offering.