OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb-” to the forthcoming $500 million 5.25% senior unsecured notes due May 30, 2029, issued by CNO Financial Group, Inc. (CNO Financial) (headquartered in Carmel, IN) [NYSE: CNO]. The outlook assigned to the Credit Rating (rating) is stable. CNO Financial’s existing Long-Term Issuer Credit Rating and Long-Term IRs are unchanged.
The proceeds of the issuance will be used to redeem CNO Financial’s outstanding $325 million 4.5% senior unsecured notes due in 2020, repay amounts outstanding under the revolving credit facility including fees and expenses related to this offering. AM Best anticipates that CNO Financial’s adjusted financial leverage ratio will increase to approximately 25.7% as a net result of the recapitalization plan. Despite the modest increase in leverage, AM Best notes that the company’s financial leverage and interest coverage ratios remain well within AM Best’s guidelines for CNO Financial’s current ratings.
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