Unum Group Enters into Term Loan Facility and Announces Redemption of 4.000% Senior Notes due 2024

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08/02/2022 - 02:30 PM

CHATTANOOGA, Tenn., Aug. 2, 2022 /PRNewswire/ -- Unum Group (NYSE: UNM) announced today that it has entered into a $350 million term loan agreement. The net proceeds from the term loan facility, together with cash on hand, are expected to be used to redeem all of the company's 4.000 percent senior notes due 2024 (CUSIP Number 91529Y AK2) (the "2024 Notes") outstanding on September 1, 2022 (the "Redemption Date").

PNC Capital Markets LLC and Truist Securities, Inc. jointly arranged the financing of the term loan facility.

The company will redeem all of the outstanding 2024 Notes at a redemption price equal to the greater of: (1) 100% of the aggregate principal amount of the 2024 Notes plus any accrued and unpaid interest on the principal amount of the 2024 Notes to the Redemption Date and (2) the sum, as calculated by the Independent Investment Banker (as defined in the 2024 Notes), of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the Redemption Date) on the 2024 Notes to be redeemed discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate (as defined in the 2024 Notes) plus 20 basis points, plus accrued and unpaid interest on the principal amount to be redeemed to the Redemption Date. As of the date of this news release, $350 million aggregate principal amount of the 2024 Notes is outstanding.

The company has instructed The Bank of New York Mellon Trust Company, N.A., the trustee and paying agent for the 2024 Notes, to distribute a notice of redemption to all registered holders of the 2024 Notes. The 2024 Notes must be surrendered to The Bank of New York Mellon Trust Company, N.A., to collect the redemption price pursuant to the notice of redemption.

FORWARD-LOOKING STATEMENTS
Certain statements in this release, including statements regarding expectations for the use of proceeds, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Unum Group and its subsidiaries. Unum Group's actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in Part 1, Item 1A (Risk Factors) of Unum Group's Annual Report on Form 10-K for the year ended December 31, 2021. The forward-looking statements in this release speak only as of the date of this release, and Unum Group does not undertake to update any particular forward-looking statement included in this release.

ABOUT UNUM
Unum (NYSE: UNM), an international provider of workplace benefits and services, has been helping workers and their families for more than 170 years. Through its Unum and Colonial Life brands, the company offers disability, life, accident, critical illness, dental, vision and stop-loss insurance; leave and absence management support and behavioral health services. In 2021, Unum reported revenues of $12.0 billion and paid $8.2 billion in benefits. The Fortune 500 company is one of the 2022 World's Most Ethical Companies, recognized by Ethisphere®.

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