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Unum Expands Note Offering

By staff Writer

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Good reviews may have helped Unum Group Corp. (NYSE:UNM) sell more debt securities than it originally had expected to issue.

Unum, Chattanooga, Tenn., says the securities are senior notes due in 2020 that pay an interest rate of 5.625%.

Unum ended up offering $400 million in notes; originally, it had expected to sell notes with a total principal amount of just $300 million.

Unum can issue a “make whole call” to redeem the notes at any time at a discount rate of Treasury plus 45 basis points.

The offering received a rating of Baa3 from Moody’s Investors Service, New York; BBB minus from Standard & Poor’s Ratings Services, New York; and BBB from Fitch, New York.

The agencies all said their ratings on Unum are stable.

S&P, for example, says it expects the soft economy to increase Unum’s disability claim incidence somewhat but that increasing diversification should help the company’s overall claims experience.