Aflac Incorporated Prices $1 Billion of Senior Notes

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Mar 09, 2015, 05:21 ET

COLUMBUS, Ga., March 9, 2015 /PRNewswire/ -- Aflac Incorporated announced today that it has priced $550 million (par value) of fixed-rate, senior notes due 2020 with a coupon of 2.40% and $450 million (par value) of fixed-rate, senior notes due 2025 with a coupon of 3.25%. The 2020 notes will be issued at a price of 99.972 with a re-offer yield of 2.406% and the 2025 notes will be issued at a price of 99.602 with a re-offer yield of 3.297%.

The company intends to use the net proceeds from this offering to fund all or a portion of the redemption price of its 8.50% senior notes due 2019, of which $850,000,000 principal amount are outstanding. The company intends to use proceeds in excess of such redemption price, if any, for general corporate purposes. The 2019 notes were issued in May 2009. The 2019 notes will be redeemed at a redemption price that includes a make-whole premium, plus any interest accrued and unpaid up to the redemption date.

This press release does not constitute a notice of redemption of the notes. A notice of redemption will be sent to all currently registered holders of the 2019 notes by the trustee, The Bank of New York Mellon Trust Company, N.A. Information about the notice of redemption and procedures for redemption may be obtained from The Bank of New York Mellon Trust Company, N.A. by calling 212.495.1784.

This offering is being made pursuant to an effective shelf registration statement previously filed by Aflac Incorporated with the Securities and Exchange Commission (SEC) and only by means of a prospectus supplement and accompanying prospectus. You may obtain the registration statement and other documents that Aflac Incorporated has filed with the SEC that contain more complete information about Aflac Incorporated and this offering by contacting:

Goldman, Sachs & Co.
200 West Street
New York, NY 10282-2198
866.471.2526

J.P. Morgan Securities LLC
383 Madison Avenue
New York, NY 10179
212.834.4533

Morgan Stanley & Co. LLC
1585 Broadway
New York, NY 10036
866.718.1649

Wells Fargo Securities, LLC
608 2^nd Avenue
South Minneapolis, MN 55402
Attn: WFS Customer Service
800.645.3751

Alternatively, these documents may be obtained by visiting the SEC website at www.sec.gov.

This press release shall not constitute an offer to sell nor the solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Aflac
When a policyholder gets sick or hurt, Aflac pays cash benefits fast. For nearly 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 work site. Through its trailblazing One Day Pay^SM 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 nine consecutive years, Aflac has been recognized by Ethisphere magazine as one of the World's Most Ethical Companies. In 2015, Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the 17th consecutive year. Also, in 2015, Fortune magazine included Aflac on its list of Most Admired Companies for the 14th time, ranking the company No. 1 in innovation for the insurance, life and health category. Aflac Incorporated is a Fortune 500 company listed on the New York Stock Exchange under the symbol AFL.

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. We desire 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 financial and capital markets risk; fluctuations in foreign currency exchange rates; significant changes in investment yield rates; credit and other risks associated with Aflac's investment in perpetual securities; differing judgments applied to investment valuations; significant valuation judgments in determination of amount of impairments taken on our investments; limited availability of acceptable yen-denominated investments; concentration of our investments in any particular single-issuer or sector concentration of business in Japan; decline in creditworthiness of other financial institutions; deviations in actual experience from pricing and reserving assumptions; subsidiaries' ability to pay dividends to Aflac Incorporated; changes in law or regulation by governmental authorities; ability to attract and retain qualified sales associates and employees; decreases in our financial strength or debt ratings; ability to continue to develop and implement improvements in information technology systems; 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; changes in U.S. and/or Japanese accounting standards; failure to comply with restrictions on patient privacy and information security; inability to recognize tax benefits associated with capital loss carryforwards; level and outcome of litigation; ability to effectively manage key executive succession; catastrophic events including, but not necessarily limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, acts of terrorism and damage incidental to such events; ongoing changes in our industry; events that damage our reputation; and failure of internal controls or corporate governance policies and procedures.

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Analyst and investor contact – Robin Y. Wilkey, 706.596.3264 or 800.235.2667; FAX: 706.324.6330 or [email protected]
Media contact – Catherine Blades, 706.596.3014; FAX: 706.320.2288 or [email protected]

SOURCE Aflac Incorporated