A.M. Best Assigns Rating to Torchmark Corporation's New Senior Debt Offering.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a" to the $250 million 10-year senior unsecured notes to be issued by Torchmark Corporation (McKinney, TX) (NYSE NYSE See: New York Stock Exchange :TMK TMK The Mushroom Kingdom (Super Mario Bros video games) TMK Torchmark Corporation (McKinney, TX) TMK Tax Map Key (Hawaii) TMK To My Knowledge ). All other ratings remain unchanged. (See related press release from June 8, 2006.) The issuance will be made under Torchmark's shelf registration previously filed with the Securities & Exchange Commission on April 28, 2006. 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). from the issuance will be used for general working capital purposes and the possible redemption or repayment of callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. and maturing securities. Torchmark's financial leverage--total debt-plus-preferred securities--including the new senior notes is approximately 27%, including partial equity credit for the preferred securities. A.M. Best believes Torchmark's future earnings will provide strong debt service coverage and enable capitalization to continue to improve. The rating reflects the company's superior capitalization, its established position in several niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. including ordinary life, Medicare supplement and direct response marketing and its consistently strong operating performance. This consistent profitability is a result of Torchmark's well-managed niche market strategy, executed by an effective management team. Torchmark is a publicly-traded insurance holding company, which operates through eight wholly-owned subsidiaries providing life and supplemental health insurance to middle-income families throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. 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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