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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 23, 2017 04:16 PM (EDT)
A.M. Best has assigned a Long-Term Issue Credit Rating of “a” to the $750 million 4.30% surplus notes due 2067 of Pacific Life Insurance Company (headquartered in Newport Beach, CA) that were recently announced by Pacific LifeCorp (Pacific Life). The outlook assigned to the Credit Rating (rating) is positive. Funding is expected to close on Oct. 24, 2017.
Pacific Life Insurance Company intends to use the proceeds from this $750 million offering for its previously announced tender offer of previously issued notes and general corporate purposes. This issuance does not have a material change to the company’s existing financial leverage profile, as the proceeds will be used for the purpose of redeeming existing higher cost debt. Interest coverage for Pacific life is considered good and is supportive of the rating level assigned to the company. Financial leverage also is in line with the rating level for the company, and the company is viewed as having a high level of financial flexibility.
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