CHICAGO, Feb. 19, 2016 -- CNA Financial Corporation (NYSE: CNA) today announced that it has priced $400 million aggregate principal amount of 4.50% senior notes due March 1, 2026 in a public offering. The notes were offered to the public at 99.975% of the principal amount with a yield to maturity of 4.503%. CNA expects the offering to close on February 24, 2016, subject to customary closing conditions.
CNA intends to use all of the net proceeds from the offering, which are estimated to be approximately $398.6 million, after deducting the underwriting discounts and estimated offering expenses, to redeem the $350 million outstanding aggregate principal balance of its 6.500% senior notes due August 15, 2016 as well as for general corporate purposes.
Citigroup, J.P. Morgan and US Bancorp are acting as joint book-running managers for the offering. An electronic copy of the final prospectus supplement and accompanying prospectus will be available at the Securities and Exchange Commission's website at www.sec.gov. In addition, a copy of the final prospectus supplement and accompanying prospectus relating to this offering may also be obtained, when available, from:
Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone (800) 831-9146 or email firstname.lastname@example.org;
J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, telephone (212) 834-4533, Attn: Investment Grade Syndicate Desk; or
U.S. Bancorp Investments, Inc., 214 N Tryon Street, 26th Floor, Charlotte, North Carolina 28202, telephone (877) 558-2607, Attn: Debt Capital Markets.
The offering is being made solely by means of a prospectus supplement and the accompanying prospectus. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities.
Serving businesses and professionals since 1897, CNA is the country's eighth largest commercial insurance writer and the 14th largest property and casualty company. CNA's insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA's services include risk management, information services, underwriting, risk control and claims administration. "CNA" is a service mark registered by CNA Financial Corporation with the United States Patent and Trademark Office. Certain CNA Financial Corporation subsidiaries use the "CNA" service mark in connection with insurance underwriting and claims activities.
This press release may include statements which relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes", "expects", "intends", "anticipates", "estimates", and similar expressions. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by CNA and include CNA's successful completion of the offering and the satisfaction of other customary conditions to the closing of the repurchase, redemption, repayment or retirement of its 6.500% senior notes due August 15, 2016. For a detailed description of these risks and uncertainties please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission available at www.cna.com.
Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA's expectations or any related events, conditions or circumstances change.
Brandon Davis, 312-822-5167 / 312-834-6091
Sarah Pang, 312-822-6394 / 312-607-5544