A.M. Best Assigns Debt Rating to FBL Financial's Senior Notes.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 5, 2004 A.M. Best Co. has assigned a debt rating of "bbb" to FBL FBL Full Bell Lines (coin grading) FBL Fly by Light FBL FIATA Bill of Lading FBL Functional Baseline FBL Foundation for a Better Life FBL Federal Barge Lines, Inc. Financial Group Inc.'s (FFG FFG Forschungsförderungsgesellschaft (German: Austrian research promotion agency) FFG Flash Flood Guidance FFG Guided Missile Frigate FFG Fall from Grace (band) FFG Fast Frigates FFG Freeware Flight Group ) (NYSE NYSE See: New York Stock Exchange :FFG) (West Des Moines West Des Moines (də moin`), city (1990 pop. 31,702), Polk co., S central Iowa, a growing suburb W of Des Moines; inc. 1893 as Valley Junction, renamed 1938. Products manufactured there include cement, metal items, and pumps. , IA) $75 million 10-year senior unsecured notes, due 2014. The notes will be private placement issues in accordance with Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. . The rating outlook is stable. FBL Financial Group is a holding company whose primary operating subsidiaries are Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company (both of West Des Moines, IA). Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the issuance of the debt securities will likely be used by FFG for the upcoming redemption of $46.2 million par amount of its Series C redeemable preferred stock and for other general corporate purposes, including capital contributions to the life insurance subsidiaries. The new debt issue increased the organization's overall financial leverage to approximately 30% on a proforma basis as of December 31, 2003. However, FFG's financial leverage and its projected fixed charge coverage are still within A.M. Best's expectations for the assigned debt rating. FFG expects to rely on available cash resources and dividends from the life companies to support its interest payments on its notes. For recent financial strength rating actions on FBL Financial Group's insurance subsidiaries, please visit www.ambest.com/press/040501fblfinancial.pdf. For a list of A.M. Best's current debt ratings, please visit www.ambest.com/ratings/debtrating/companies.html. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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