A.M. Best Assigns Debt Rating to Protective's New Senior Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a debt rating of "a" to $150 million 4.875% 10-year senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes of Protective Life Corporation (Protective) (NYSE NYSE See: New York Stock Exchange :PL) (Birmingham Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , AL). This issuance exhausts Protective's $500 million shelf registration previously filed with the Securities & Exchange Commission. Additionally, A.M. Best has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the ratings on the company's existing debt securities. The financial strength ratings on Protective's life/health and property/casualty insurance subsidiaries are unaffected. All ratings have a stable outlook. The majority of the proceeds, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100 million, will be used to pay down outstanding bank debt. The balance of the proceeds will be used for general corporate purposes, affording Protective additional financial flexibility in the future. Protective's financial leverage--total debt plus preferred securities--including the new senior notes is approximately 30%. A.M. Best expects the company's debt-to-capital ratio to remain within the 25-30% range in the near to medium term. Furthermore, A.M. Best believes Protective's future earnings will provide strong debt service coverage and enable 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. to remain fairly constant, although Protective actively acquires blocks of business and insurance companies through a separate division established for this purpose. The following debt rating has been assigned with a stable outlook: Protective Life Corporation-- --"a" on $150 million 4.875% senior unsecured notes, due 2014 The following debt ratings have been affirmed with a stable outlook: Protective Life Corporation-- --"a" on $250 million 4.30% senior unsecured notes, due 2013 --"a" on $35 million 8.25% senior unsecured notes, due 2030 PLC Capital Trust III-- --"a-" on $100 million 7.50% Trust Originated Preferred Securities (TOPrS), backed by subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before , due 2031 PLC Capital Trust IV-- --"a-" on $115 million 7.25% Trust Originated Preferred Securities (TOPrS), backed by subordinated debentures, due 2032 PLC Capital Trust V-- --"a-" on $100 million 6.125% Trust Originated Preferred Securities (TOPrS), backed by subordinated debentures, due 2034 For a list of A.M. Best's Debt Ratings, please visit http://www.ambest.com/debtratings/. 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 http://www.ambest.com. |
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