AM Best Assigns Issue Credit Rating to Unum Group's Senior Unsecured Notes

Business Wire 5-Sep-2019 12:31 PM

AM Best has assigned a Long-Term Issue Credit Rating of "bbb" to the $450 million 4.50% 30-year senior unsecured notes issued by Unum Group (Unum) (headquartered in Chattanooga, TN) (NYSE:UNM). The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Unum and its subsidiaries are unchanged.

The proceeds of the note issuance is expected to be used to retire existing debt through a tender offer on Unum's $226.5 million of outstanding 7.405% notes due 2038 and $350 million 3.0% notes due 2021.

AM Best expects that the issuance will not increase financial leverage for Unum and will be neutral to the total amount of debt outstanding. Unum's financial leverage, as calculated by AM Best, is moderate at approximately 23.8% and interest coverage is good at over nine times at June 30, 2019.

Unum has good liquidity through its favorable operating cash flows. Additional sources of financial flexibility for the organization are holding company cash and investments and a $600 million revolving credit facility. Unum continues to report strong operating results driven by its ongoing insurance business with a leading market positions in the majority of its core product lines and a diverse nationwide distribution network.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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