) announced that it has priced a registered offering of $175 million of subordinated debentures due March 30, 2053 with a coupon of 6.35%, and redeemable in whole or in part after March 30, 2018 at a redemption price equal to their principal amount. The debentures are also redeemable in whole, and not in part, before March 30, 2018 in case of specified changes in the tax or rating agency treatment of the debentures. The Hanover plans to use the net proceeds from this offering for general corporate and working capital purposes, which may include repurchases of its common stock.
Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, and Wells Fargo Securities, LLC served as joint book-running managers for the transaction.
The Hanover anticipates that the offering will close on or around March 27, 2013, subject to customary closing conditions. The Hanover intends to apply for listing of the subordinated debentures on the New York Stock Exchange. If the application is approved, The Hanover expects trading in the subordinated debentures to begin within 30 days of issuance.
The Hanover has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (SEC) for the offering to which this communication relates. The registration statement and other documents that The Hanover has filed with the SEC, which contain more complete information about The Hanover and this offering, can be obtained by contacting:
Morgan Stanley & Co. LLC
180 Varick Street
New York, NY 10014
Attn: Prospectus Department
866-718-1649
[email protected]
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
222 Broadway, 11th Floor,
New York, New York 10038
800-294-1322
[email protected]
Wells Fargo Securities, LLC,
1525 West W.T. Harris Blvd., NC0675
Charlotte, NC 28262
Attn: Capital Markets Client Support
800-326-5897
[email protected]
Alternatively, these documents may be obtained by visiting the SEC website at http://www.sec.gov/.
Nothing herein shall constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations with respect to future events and financial performance and the debt offering, including the expected closing of the debt offering and the use of proceeds from the debt offering.
The Hanover cautions investors that any such forward-looking statements are not guarantees of future performance, and actual results could differ materially. Investors are directed to consider the risks and uncertainties in The Hanover's business that may affect future performance and that are discussed in readily available documents, including The Hanover's annual report, registration statement dated March 20, 2013, and other documents filed by The Hanover with the SEC.
About The Hanover
The Hanover Insurance Group, Inc. (NYSE:
