OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned an issue rating of “bbb” to the $250 million 4.50% senior unsecured notes due 2025 of Horace Mann Educators Corporation (Horace Mann) (headquartered in Springfield, IL) [NYSE: HMN]. The outlook assigned to the rating is stable. All remaining ratings of Horace Mann and its subsidiaries are unchanged. (Please see related A.M. Best press release dated February 5, 2015.)
The proceeds from the issuance will be used to redeem or repay certain of the company’s outstanding indebtedness, including their 6.85% senior notes due April 15, 2016 and borrowings under their bank credit facility. Any remaining proceeds will be used for general corporate purposes. Horace Mann’s adjusted debt-to-capital and adjusted debt-to-tangible capital are approximately 18.8% and 19.5%, respectively, and are within A.M. Best’s guidelines for its current ratings level. In addition, Horace Mann’s interest coverage ratio is expected to remain solid for its ratings.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.
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