Best’s News & Research Service - November 18, 2021 02:34 PM (EST)
AM Best Assigns Issue Credit Rating to Primerica, Inc.’s Senior Unsecured Notes
- November 18, 2021 02:34 PM (EST)
Oldwick //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” (Excellent) to Primerica, Inc.’s (Primerica) (headquartered in Duluth, GA) recently announced $600 million 2.8% senior unsecured notes, due November 2031. The outlook assigned to this Credit Rating (rating) is stable. All other Long-Term IRs of Primerica and its subsidiaries are unchanged.
The net proceeds from the senior debt offering will be used to retire Primerica’s outstanding $375 million 4.75% senior unsecured notes maturing July 15, 2022, as well as approximately $125 million of borrowings outstanding under their revolving credit facility as of September 30, 2021. The remaining proceeds will be used for general corporate purposes. Following the issuance of the senior unsecured notes, Primerica’s financial leverage will temporarily rise with coverage metrics slightly declining, but will remain within the guidelines that support the current rating.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.