Assurant, Inc. Prices Baby Bonds

Insurer Assurant Inc. (AIZ) has priced their previously announced subordinated notes.

The issue was priced at 5.25%. The issue is rated Ba1 by Moody’s and BB+ by Standard and Poor’s–both 1 notch lower than investment grade.

The issue will pay quarterly interest payments, but the company will have the right to defer interest payments for up to 5 years, on 1 or more occasions although not past the maturity date which is 1/15/2061. If deferred interest will continue to accrue.

The typical optional redemption can occur beginning 1/15/2026 for $25/share plus accrued interest.

There will be no OTC grey market trading on the issue, but those with a desire to buy notes before exchange trading occurs can call their broker with the CUSIP. It is likely the issue will begin to trade on the NYSE within a week or 10 days.

The pricing term sheet can be read here.

6 thoughts on “Assurant, Inc. Prices Baby Bonds”

  1. They announced a div hike on their common. guess they are borrowing with this to pay the hike. I will pass.

    1. I don’t know the company well, but they will earn about $8.90 this year and the dividend is $2.64, so it doesn’t appear that they are issuing this to pay common dividend.

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