COLUMBUS, Ga., Dec. 19, 2016 /PRNewswire/ -- Aflac Incorporated
(NYSE: AFL) announced today that, pursuant to its previously
announced cash tender offer (the "Tender Offer") for up to an
aggregate purchase price of $400,000,000, excluding accrued interest, fees
and expenses (the "Maximum Tender Amount"), of its 6.900% Senior
Notes due 2039 (the "2039 Notes") and its 6.45% Senior Notes due
2040 (the "2040 Notes" and, together with the 2039 Notes, the
"Notes"), approximately $438 million
in combined aggregate principal amount of the Notes was validly
tendered and not validly withdrawn at or prior to 5:00 p.m., New York
City time, on December 16,
2016, the early tender date for the Tender Offer (the "Early
Tender Date"). In addition, the Company has increased the
Maximum Tender Amount from $400,000,000 to $500,000,000. All other terms of the Tender Offer
as previously announced remain unchanged. The Tender Offer is being
made upon, and is subject to, the terms and conditions set forth in
the Offer to Purchase, dated December 5,
2016, and the related Letter of Transmittal (as they may be
amended or supplemented, the "Tender Offer Documents").
In accordance with the terms of the Tender Offer, the withdrawal
deadline was 5:00 p.m., New York City time, on December 16, 2016. As a result, tendered
Notes may no longer be withdrawn, except in certain limited
circumstances where additional withdrawal rights are required by
law (as determined by Aflac).
The table below sets forth the aggregate principal amount of
each series of Notes that was validly tendered and not validly
withdrawn on or prior to the Early Tender Date.
Title of
Security
|
CUSIP Nos.
|
Acceptance Priority Level
|
Principal Amount
Outstanding
|
Principal Amount
Tendered
|
6.900% Senior Notes
due 2039
|
001055AD4
|
1
|
$400,000,000
|
$176,484,000
|
6.45% Senior Notes
due 2040
|
001055AF9
|
2
|
$450,000,000
|
$261,449,000
|
Acceptance of the Notes will be subject to the Acceptance
Priority Levels set forth in the table above based on the Maximum
Tender Amount, with 1 being the highest Acceptance Priority Level
and 2 being the lowest Acceptance Priority Level. Aflac will accept
all of the 2039 Notes validly tendered and not validly withdrawn at
or prior to the Early Tender Date, and will accept the 2040 Notes
validly tendered and not validly withdrawn at or prior to the Early
Tender Date on a pro rata basis. In addition, Aflac will not accept
any Notes tendered after the Early Tender Date.
Aflac expects to make payment for the accepted Notes tomorrow,
December 20, 2016. Aflac will
promptly return any Notes tendered but not accepted for
purchase.
Holders of Notes subject to the Tender Offer who validly
tendered and did not validly withdraw their Notes on or prior to
the Early Tender Date are eligible to receive the Total
Consideration (as defined in the Tender Offer Documents), which
includes an early tender premium of $50 per $1,000
principal amount of Notes tendered by such holders and accepted for
purchase by Aflac (the "Early Tender Premium").
In addition to the Total Consideration, all holders of Notes
accepted for purchase in connection with the Early Tender Date will
also receive accrued and unpaid interest, rounded to the nearest
cent, on those Notes from the last applicable interest payment date
up to, but not including, the settlement date.
Aflac has retained Goldman, Sachs & Co. and Wells Fargo
Securities, LLC as the Joint Lead Dealer Managers and Mizuho
Securities USA Inc. and SMBC Nikko
Securities America, Inc. as Co-Dealer Managers. D.F. King & Co., Inc. is the Information
Agent and Depositary. For additional information regarding the
terms of the tender offer, please contact: Goldman, Sachs & Co
at (800) 828-3182 (toll free) or (212) 357-1452 (collect) or Wells
Fargo Securities, LLC at (866) 309-6316 (toll-free) or (704)
410-4760 (collect). Requests for documents and questions regarding
the tendering of securities may be directed to D.F. King & Co., Inc. by telephone at (212)
269-5550 (for banks and brokers only), (888) 887-1266 (for all
others toll-free) or by email at aflac@dfking.com or to the Joint
Lead Dealer Managers at their respective telephone numbers.
This news release shall not constitute an offer to sell, a
solicitation to buy or an offer to purchase or sell any
securities. The Tender Offer is being made only pursuant to
the Offer to Purchase and only in such jurisdictions as is
permitted under applicable law.
About Aflac
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For six decades, Aflac insurance policies have given
policyholders the opportunity to focus on recovery, not financial
stress. In the United States,
Aflac is the leading provider of voluntary insurance at the
worksite. Through its trailblazing One Day PaySM
initiative, Aflac U.S. can receive, process, approve and disburse
payment for eligible claims in one business day. In Japan, Aflac is the leading provider of
medical and cancer insurance and insures one in four households.
Aflac individual and group insurance products help provide
protection to more than 50 million people worldwide. For 10
consecutive years, Aflac has been recognized by Ethisphere as one
of the World's Most Ethical Companies. In 2016, Fortune magazine
recognized Aflac as one of the 100 Best Companies to Work For in
America for the 18th consecutive year and included Aflac on its
list of Most Admired Companies for the 15th time, ranking the
company No. 1 in innovation for the insurance, life and health
category for the second consecutive year. In 2015, Aflac's contact
centers were recognized by J.D. Power by providing "An Outstanding
Customer Service Experience" for the Live Phone Channel. Aflac
Incorporated is a Fortune 500 company listed on the New York Stock
Exchange under the symbol AFL. To find out more about Aflac and One
Day PaySM, visit aflac.com or espanol.aflac.com.
Forward-Looking Information
The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" to encourage companies to provide prospective
information, so long as those informational statements are
identified as forward-looking and are accompanied by meaningful
cautionary statements identifying important factors that could
cause actual results to differ materially from those included in
the forward-looking statements. Aflac desires to take advantage of
these provisions. This document contains cautionary statements
identifying important factors that could cause actual results to
differ materially from those projected herein, and in any other
statements made by company officials in communications with the
financial community and contained in documents filed with the
Securities and Exchange Commission (SEC).
Forward-looking statements are not based on historical
information and relate to future operations, strategies, financial
results or other developments. Furthermore, forward-looking
information is subject to numerous assumptions, risks and
uncertainties. In particular, statements containing words such as
"expect," "anticipate," "believe," "goal," "objective," "may,"
"should," "estimate," "intends," "projects," "will," "assumes,"
"potential," "target" or similar words as well as specific
projections of future results, generally qualify as
forward-looking. Aflac undertakes no obligation to update such
forward-looking statements. We caution readers that the following
factors, in addition to other factors mentioned from time to time,
could cause actual results to differ materially from those
contemplated by the forward-looking statements: difficult
conditions in global capital markets and the economy; governmental
actions for the purpose of stabilizing the financial markets;
defaults and credit downgrades of securities in our investment
portfolio; exposure to significant interest rate risk;
concentration of business in Japan; limited availability of acceptable
yen-denominated investments; failure to comply with restrictions on
patient privacy and information security; foreign currency
fluctuations in the yen/dollar exchange rate; deviations in actual
experience from pricing and reserving assumptions; subsidiaries'
ability to pay dividends to Aflac Incorporated; ability to continue
to develop and implement improvements in information technology
systems; concentration of our investments in any particular
single-issuer or sector; decline in creditworthiness of other
financial institutions; ability to attract and retain qualified
sales associates and employees; differing judgments applied to
investment valuations; significant valuation judgments in
determination of amount of impairments taken on our investments;
credit and other risks associated with Aflac's investment in
perpetual securities; decreases in our financial strength or debt
ratings; inherent limitations to risk management policies and
procedures; extensive regulation and changes in law or regulation
by governmental authorities; interruption in telecommunication,
information technology and other operational systems, or a failure
to maintain the security, confidentiality or privacy of sensitive
data residing on such systems; catastrophic events including, but
not necessarily limited to, epidemics, pandemics, tornadoes,
hurricanes, earthquakes, tsunamis, acts of terrorism and damage
incidental to such events; changes in U.S. and/or Japanese
accounting standards; ability to effectively manage key executive
succession; level and outcome of litigation; increased expenses and
reduced profitability resulting from changes in assumptions for
pension and other postretirement benefit plans; ongoing changes in
our industry; loss of consumer trust resulting from events external
to our operations; and failure of internal controls or corporate
governance policies and procedures.
Additional factors that could cause actual results to differ,
possibly materially, from those in the forward-looking statements
are discussed throughout Aflac's periodic filings with the SEC
pursuant to the Securities Exchange Act of 1934.
Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667; FAX: 706.324.6330 or
rwilkey@aflac.com
Media contact – Catherine Blades,
706.596.3014; FAX: 706.320.2288 or cblades@aflac.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aflac-incorporated-announces-early-results-of-its-notes-tender-offer-and-increase-in-the-maximum-tender-amount-300380991.html
SOURCE Aflac Incorporated