The Hanover Insurance Group, Inc. Announces Pricing of $500 Million Senior Notes Offering
Rhea-AI Summary
The Hanover Insurance Group (NYSE: THG) has announced the pricing of $500 million senior unsecured notes with a 5.50% interest rate, due September 1, 2035. The company plans to use the proceeds to repay its existing 7.625% Senior Notes due October 2025 and 4.500% Senior Notes due April 2026, along with general corporate purposes.
The debt offering is expected to close around August 21, 2025, subject to customary conditions. Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley are serving as joint book-running managers for the offering, which is being made through an effective shelf registration with the SEC.
Positive
- New notes carry a lower 5.50% interest rate compared to existing 7.625% notes, potentially reducing interest expenses
- Extended debt maturity profile to 2035, improving long-term financial flexibility
- Successful placement of substantial $500 million offering indicates strong market confidence
Negative
- Increased total debt obligation with $500 million new issuance
- Additional interest expenses will impact cash flow until existing notes are repaid
News Market Reaction
On the day this news was published, THG gained 0.70%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Nothing herein shall constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such state or jurisdiction. The offering is being made pursuant to an effective shelf registration filed with the Securities and Exchange Commission ("SEC") on August 18, 2025. A prospectus and prospectus supplement related to this offering have been filed with the SEC. This press release does not constitute a notice of redemption with respect to, or any offer to purchase, the Debentures. Any such notice will be given to holders of the Debentures in a manner prescribed in the indenture governing the Debentures.
Copies of the prospectus and related prospectus supplement may be obtained at no cost by visiting the SEC website at http://www.sec.gov. Alternatively, copies or information concerning this offering may be obtained by contacting the joint book-running managers: Goldman Sachs & Co. LLC at +1 (800) 828-3182, J.P. Morgan Securities LLC at +1 (212) 834-4533, or Morgan Stanley & Co. LLC at +1 (866) 718-1649.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in
Forward-Looking Statements
This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations with respect to future events and financial performance and the debt offering, including the expected closing of the debt offering and the use of proceeds from the debt offering. The company cautions investors that any such forward-looking statements are not guarantees of future performance, and actual results could differ materially. Investors are directed to consider the risks and uncertainties in the company's business that may affect future performance and that are discussed in readily available documents, including those risks which are discussed in the company's annual report and other documents filed by the company with the SEC.
Contacts: | ||
Investors: | Media: | |
Oksana Lukasheva | Emily P. Trevallion | |
(508) 525-6081 | (508) 855-3263 | |
Email: olukasheva@hanover.com | Email: etrevallion@hanover.com |
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SOURCE The Hanover Insurance Group, Inc.
FAQ
What is the size and interest rate of The Hanover Insurance Group's (THG) new senior notes offering?
How will The Hanover Insurance Group (THG) use the proceeds from its 2025 notes offering?
When will The Hanover Insurance Group's (THG) new $500M notes offering close?
Who are the book-running managers for THG's 2025 notes offering?
What is the maturity date for The Hanover Insurance Group's new senior notes?
