Business Context and Reporting Period
Company: Assurant, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: August 22, 2019
Event: Completion of a debt offering and announcement of proceeds usage.
Key Financial Metrics
- New Debt Issuance: $350.0 million aggregate principal amount of 3.700% Senior Notes due 2030.
- Offering Price: 99.965% of principal amount.
- Interest Payments: Semi-annually on February 22 and August 22, commencing February 22, 2020.
- Maturity Date: February 22, 2030.
- Debt Seniority: Senior unsecured obligations ranking equally with other present and future senior unsecured indebtedness.
Material Changes and Use of Proceeds
The Company intends to use the net proceeds from the new offering, along with available cash on hand, for the following specific purposes:
- Tender Offer Funding: To fund the purchase of up to $100.0 million aggregate principal amount of its outstanding 6.750% Senior Notes due 2034.
- Redemption Funding: To fund the redemption of all or a portion of the $300.0 million outstanding Floating Rate Senior Notes due 2021.
- Associated Costs: To pay related premiums, fees, and expenses associated with the above transactions.
- General Corporate Purposes: Any remaining net proceeds will be used for general corporate purposes.
Outlook, Risks, and Unusual Items
- Redemption Terms: Prior to November 22, 2029 (the "Par Call Date"), the Company may redeem the Notes at a "make-whole" premium plus accrued interest. On or after the Par Call Date, redemption is at 100% of principal plus accrued interest.
- Forward-Looking Statements: The filing contains forward-looking statements subject to significant uncertainties; actual results may differ materially from projections.
- Risk Factors: Investors are directed to the risk factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
Investor Verification Checklist
- Verify the final amount of the 6.750% Senior Notes due 2034 purchased via the tender offer.
- Confirm the portion of the Floating Rate Senior Notes due 2021 actually redeemed.
- Review the "make-whole" premium calculation details in the form of Note (Exhibit 4.2) for potential early redemption costs.
- Check subsequent filings for any changes in the use of remaining net proceeds.