A.M. Best Assigns Debt Rating to NLV Financial Corporation's New Senior Notes.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 21, 2003 A.M. Best Co. has assigned a debt rating of "bbb" to NLV NLV Norwalk-Like Virus NLV North Las Vegas (Nevada) NLV National Language Version NLV National Library of Vietnam NLV Nanosat Launch Vehicle NLV New Living Version (version of the Bible) Financial Corporation's (NLV Financial) $200 million 7.5% senior unsecured notes due August 2033. The financial strength rating and debt ratings for NLV Financial and National Life of Vermont have a negative outlook. A.M. Best expects NLV Financial to use the debt proceeds to pay down, either in whole or in part, approximately $70 million of its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , National Life Insurance Company's (NL) 8.25% surplus notes, which mature March 1, 2024 and are available for redemption beginning in 2004. The remaining proceeds will be used to provide additional capital to NL to support its growth objectives. A.M. Best views favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. NLV Financial's planned use of the 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). to support the growth objectives of NL and enhance NL's overall capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. levels. The resulting financial leverage and interest coverage ratios are adequate for NL's financial strength rating of A (Excellent). The initial debt rating reflects NL's strong growth in its core life and annuity business, positive operating metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. and diversified distribution and marketing channels. NL continues to effectively execute on its strategy of organic growth in its core businesses, selling traditional life and fixed and variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. to the national marketplace.
The following debt rating has been assigned:
NLV Financial Corporation--
-- "bbb" rating on $200 million 7.5% senior unsecured notes, due
August 2033
The following debt rating is unaffected:
National Life Insurance Company--
-- "bbb+" rating on $70 million National Life of Vermont 8.25%
surplus notes due March 1, 2024
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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