OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bb+” to the recently issued $300 million 6.25% Junior Subordinated Notes due 2058, of Unum Group (Unum) (headquartered in Chattanooga, TN). The outlook assigned to the Credit Rating (rating) is stable.
The proceeds from the offering will be utilized to repay, redeem or repurchase the $200 million aggregate principle amount of its 7% Senior Notes due 2018 and for general corporate purposes. The notes may be redeemed in whole or in part from time to time on or after June 15, 2023. Despite the new issuance, Unum’s financial leverage remains within the range that supports the company’s current Long-Term IRs. In addition, the company maintains strong interest coverage ratios along with additional cash and short-term investments at the holding company level that is equivalent to five times interest expense.
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