CHICAGO–(BUSINESS WIRE)–Kemper Corporation (NYSE: KMPR)
today announced the successful completion of both a new term loan credit
agreement with an aggregate principal amount of up to $50 million and a
$100 million increase of revolving credit borrowing capacity under the
terms of its existing credit agreement.
The increased credit commitment utilized the accordion feature under
Kemper’s existing credit agreement and resulted in an increase of the
available revolving credit commitments thereunder from $300 million to
$400 million. As of the current date, there are no outstanding
borrowings under the existing revolving credit facility, which is
scheduled to mature in June 2023.
A portion of the new term loan, along with other funds, will be used to
redeem all $150 million aggregate principal amount of its 7.375%
Subordinated Debentures due 2054. This press release does not constitute
a notice of redemption with respect to Kemper’s 7.375% Subordinated
Debentures due 2054.
The new term loan agreement and expanded credit capacity under the
revolver will provide Kemper with future financial flexibility.
PNC Bank, National Association served as administrative agent for the
new term loan credit agreement. Additionally, PNC Capital Markets LLC
and BMO Capital Markets Corp. served as joint lead arrangers, with the
former also serving as sole bookrunner.
JPMorgan Chase Bank, N.A. served as administrative agent and syndication
agent, and Bank of America, N.A. and Wells Fargo Bank, National
Association, also served as syndication agents, for the increase in
borrowing capacity under the terms of Kemper’s existing revolving credit
agreement. Additionally, JPMorgan Chase Bank, N.A., Merrill Lynch,
Pierce, Fenner & Smith, Incorporated and Wells Fargo Securities, LLC
served as joint bookrunners and joint lead arrangers.
On May 31, 2019, Kemper also repaid the remaining $35 million of
aggregate principal outstanding under its existing term loan due June
29, 2020 with cash on hand.
About Kemper
Kemper Corporation (NYSE: KMPR) is
one of the nation’s leading specialized insurers. With over $12 billion
in assets, Kemper is improving the world of insurance by providing
affordable and easy-to-use personalized solutions to individuals,
families and businesses through its Auto, Personal Insurance, Life and
Health brands. Kemper serves over 6.4 million policies, is represented
by more than 30,000 agents and brokers, and has over 8,000 associates
dedicated to meeting the ever-changing needs of its customers.
Cautionary Statements Regarding Forward-Looking Information
This press release may contain information that includes or is based on
forward-looking statements within the meaning of the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future
events and can be identified by the fact that they relate to future
actions, performance or results rather than strictly to historical or
current facts.
Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this press release.
Forward-looking statements involve a number of risks and uncertainties
that are difficult to predict and are not guarantees of future
performance. No assurances can be given that the results and financial
condition contemplated in any forward-looking statements will be
achieved or will be achieved in any particular timetable. Kemper assumes
no obligation to publicly correct or update any forward-looking
statements as a result of events or developments subsequent to the date
of this press release. The reader is advised, however, to consult any
further disclosures Kemper makes on related subjects in its filings with
the SEC.
Contacts
Investors: Michael Marinaccio, 312.661.4930, [email protected]
News
Media: Barbara Ciesemier, 312.661.4521, [email protected]
