OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bb+” to the $550 million 5.5% senior unsecured notes due 2025 issued by Fidelity & Guaranty Life Holdings, Inc. (FGLH) (Delaware). The outlook assigned to the Credit Rating (rating) is positive. FGLH’s Long-Term Issuer Credit Rating of “bb+” with a positive outlook and the Credit Ratings of its operating insurance subsidiaries are unchanged.
The debt issuance will be used to repay $135 million of borrowings under the company’s revolving credit facility and to redeem in full and satisfy and discharge the entire outstanding $300 million aggregate principal amount of FGLH’s outstanding 6.375% senior notes due 2021. The remaining amount will be used for general corporate purposes, which may include additional capital contributions to the company’s insurance subsidiaries. The company’s adjusted financial leverage is expected to remain adequate at 26% following the redemption of the senior notes.
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