Attached files
file | filename |
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EX-10.1 - PURCHASE AGREEMENT - CNO Financial Group, Inc. | exhibit101.htm |
EX-4.2 - 1ST SUPPLEMENTAL INDENTURE - CNO Financial Group, Inc. | exhibit42.htm |
8-K - FORM 8-K - CNO Financial Group, Inc. | form8k.htm |
Exhibit 99.1
For
Release
|
Immediate
|
Contacts
|
(News Media) Tony
Zehnder, Corporate Communications
312.396.7086
|
(Investors) Scott Galovic, Investor Relations 317.817.3228
Conseco
Announces Repurchase of $64 Million of 3.50% Convertible Debentures and
Second
Closing of 7.0% Convertible Senior Debentures Due 2016
Carmel, Ind., February 4, 2010
– Conseco, Inc. (NYSE:CNO) announced today that it has repurchased $64 million
of its 3.50% Convertible Debentures due September 30, 2035 (the “Old
Debentures”) in a privately negotiated transaction. In connection
with the repurchase, the Company completed a second closing of $64 million
aggregate principal amount of its 7.0% Convertible Senior Debentures due 2016
(the “New Debentures”) as part of its previously announced private offering of
New Debentures. The first closing of $176.5 million of the New
Debentures was completed on November 13, 2009, upon settlement of a tender offer
for Old Debentures.
The
purchase price for the $64 million of Old Debentures was equal to 100% of the
principal amount plus accrued and unpaid interest. As a result of the
repurchase, Conseco expects to recognize a loss on the extinguishment of debt of
approximately $2 million, representing the write-off of unamortized discount and
issuance costs associated with the Old Debentures that were
repurchased.
The
issuance of the $64 million of New Debentures was made pursuant to the purchase
agreement that Conseco entered into in October 2009 relating to the private
offering of up to $293 million of the New Debentures. Conseco
received aggregate net proceeds of approximately $61.4 million in the second
closing of the New Debentures (after taking into account the discounted offering
price less the initial purchaser’s discounts and commissions, but before
expenses). After the repurchase announced today, an aggregate of
$52.5 million of the Old Debentures remain outstanding.
This
press release does not constitute an offer to sell, or the solicitation of an
offer to buy, any securities. The New Debentures and common stock
issuable upon conversion of the New Debentures have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”) or the securities
laws of any other jurisdiction and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements. The New Debentures were resold only to “qualified
institutional buyers” pursuant to Rule 144A under the Securities
Act.
About Conseco
Conseco,
Inc.’s insurance companies help protect working American families and seniors
from financial adversity: Medicare supplement, long-term care, cancer, critical
illness and accident policies protect people against major unplanned expenses;
annuities and life insurance products help people plan for their financial
futures. For more information, visit Conseco’s website at www.conseco.com.
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