) recently announced $750 million unsecured senior subordinated
notes have been conferred a debt rating of "bbb" by A.M. Best
These notes will be issued in three parts - $250 million 2.96%
senior unsecured notes due March 2018, the $250 million 4.26%
senior unsecured notes due March 2023 and the $250 million 5.83%
senior unsecured notes due March 2043
Assurant has also announced the pricing of a public offering
of $350 million in aggregate principal amount of its 2.50% senior
notes due 2018 and $350 million in aggregate principal amount of
4.00% senior notes due 2023.
The funds gathered from the notes issue will be used primarily
for general corporate purposes which includes redemption of $500
million of 5.63% senior notes due February 2014.
The issue will be managed by BofA Merrill Lynch a unit of
Bank of America Corp.
) and J.P. Morgan Securities LLC of
JPMorgan Chase & Co.
) who will be acting as joint book-running managers.
All the ratings carry a stable outlook. A stable outlook
reflects that Assurant, is experiencing stable financial and
market trends, and that therefore a rating change in the near
term is unlikely.
The financial position of Assurant remains strong with $4.4
billion of equity capital as of Dec 31, 2012, which remained
unchanged on a sequential basis. The company maintains a low
leverage ratio of 18.3%, almost unchanged from 18.4% as of Dec
Assurant currently carries a Zacks Rank #2 (Buy). Other
insurers such as
Assured Guaranty Ltd.
) with a Zacks Rank #2 (Buy) is worth considering.
ASSURED GUARNTY (AGO): Free Stock Analysis
ASSURANT INC (AIZ): Free Stock Analysis
BANK OF AMER CP (BAC): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
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