DES MOINES, Iowa--(BUSINESS WIRE)--May. 18, 2009--
Principal Financial Group, Inc. (NYSE: PFG) announced today that it has
priced its offering of senior notes. A total of $400 million of 5-year
fixed-rate senior notes was issued with a coupon rate of 7.875 percent,
and a total of $350 million of 10-year fixed-rate senior notes was
issued with a coupon rate of 8.875 percent. The proceeds will primarily
be used to refinance the existing $441 million of notes due on August
15, 2009, with the remaining proceeds being used for general corporate
purposes, including funding the operations of the company’s life
insurance and other subsidiaries.
Citi, Credit Suisse and Deutsche Bank Securities are the joint
book-running managers of the offering. Barclays Capital, Morgan Stanley,
UBS Investment Bank and Wachovia Securities are senior co-managers, and
RBS and The Williams Capital Group, L.P. are co-managers.
The notes are being offered pursuant to the Company’s effective shelf
registration statement on file with the Securities and Exchange
Commission. A prospectus supplement and the accompanying base prospectus
may be obtained upon request from Credit Suisse Prospectus Department,
One Madison Avenue, New York, NY 10010, telephone 1-800-221-1037.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any offer or sale of
the notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under the
securities laws of any jurisdiction. Any offer, solicitation or sale
will be made only by means of the prospectus supplement and the
accompanying base prospectus.
Forward looking and cautionary statements
This press release contains forward-looking statements, including,
without limitation, statements as to operating earnings, net income
available to common stockholders, net cash flows, realized and
unrealized losses, capital and liquidity positions, sales and earnings
trends, and management's beliefs, expectations, goals and opinions. The
company does not undertake to update or revise these statements, which
are based on a number of assumptions concerning future conditions that
may ultimately prove to be inaccurate. Future events and their effects
on the company may not be those anticipated, and actual results may
differ materially from the results anticipated in these forward-looking
statements. The risks, uncertainties and factors that could cause or
contribute to such material differences are discussed in the company's
annual report on Form 10-K for the year ended December 31, 2008, and in
the company's quarterly report on Form 10-Q for the quarter ended March
31, 2009, filed by the company with the Securities and Exchange
Commission, as updated or supplemented from time to time in subsequent
filings. These risks and uncertainties include, without limitation:
adverse capital and credit market conditions that may significantly
affect the company’s ability to meet liquidity needs, access to capital
and cost of capital; difficult conditions in the global capital markets
and the general economy, which the company does not expect to improve in
the near future, that may materially adversely affect the company’s
business and results of operations; the actions of the U.S. government,
Federal Reserve and other governmental and regulatory bodies for
purposes of stabilizing the financial markets might not achieve the
intended effect; the risk from acquiring new businesses, which could
result in the impairment of goodwill and/or intangible assets recognized
at the time of acquisition; impairment of other financial institutions
that could adversely affect the company; investment risks which may
diminish the value of the company’s invested assets and the investment
returns credited to customers, which could reduce sales, revenues,
assets under management and net income; requirements to post collateral
or make payments related to declines in market value of specified assets
may adversely affect company liquidity and expose the company to
counterparty credit risk; changes in laws, regulations or accounting
standards that may reduce company profitability; fluctuations in foreign
currency exchange rates that could reduce company profitability;
Principal Financial Group, Inc.’s primary reliance, as a holding
company, on dividends from its subsidiaries to meet debt payment
obligations and regulatory restrictions on the ability of subsidiaries
to pay such dividends; competitive factors; volatility of financial
markets; decrease in ratings; interest rate changes; inability to
attract and retain sales representatives; international business risks;
a pandemic, terrorist attack or other catastrophic event; and default of
the company’s re-insurers.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)1
is a leader in offering businesses, individuals and institutional
clients a wide range of financial products and services, including
retirement and investment services, life and health insurance, and
banking through its diverse family of financial services companies. A
member of the Fortune 500, the Principal Financial Group has $236.6
billion in assets under management2 and serves some 18.8
million customers worldwide from offices in Asia, Australia, Europe,
Latin America and the United States. Principal Financial Group, Inc. is
traded on the New York Stock Exchange under the ticker symbol PFG. For
more information, visit www.principal.com.
1 "The Principal Financial Group" and “The Principal” are
registered service marks of Principal Financial Services, Inc., a member
of the Principal Financial Group.
2 As of March 31, 2009
Source: Principal Financial Group, Inc.
Principal Financial Group, Inc.
Media Contact:
Susan
Houser, 515-248-2268
Houser.Susan@principal.com
or
Investor
Relations:
Tom Graf, 515-235-9500
investor-relations@principal.com
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