Protective Life Gets $800 Million From Offerings

Betsy, is the 4Q gain coming from Protective's purchase of the notes from the unit, or is it coming from the unit's repurchase of its notes from third parties. Both?

BIRMINGHAM, Ala. (AP) — Insurance and investment products provider Protective Life Corp. said Thursday it closed on a number of different offerings that brought in $800 million.

The proceeds were used to buy newly issued surplus notes from subsidiary Golden Gate Captive Insurance Co. Golden Gate concurrently purchased at a discount $800 million in aggregate principal amount of its floating rate surplus notes held by third parties. The repurchase transactions will boost fourth-quarter results by 94 cents per share, or $126 million, before taxes.

On Friday, the company closed on offerings of $400 million of senior notes due 2019; $100 million of senior notes due 2024; and $300 million of senior notes due 2039.

Banc of America Securities, Barclays Capital Inc. and Wells Fargo Securities were joint book-running managers for the 2019 and 2039 notes.

Banc of America Securities and Wells Fargo Securities were joint book-running managers for the 2024 notes.