Kemper Announces New Term Loan and Increase in Revolving Credit Commitments

Kemper Corporation 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 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.

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