8-KOther EventsExhibits & Filings

ALLSTATE CORP 8-K Report, Corporate Update (Jan 11, 2012)

Filed January 11, 2012For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation (ALL) filed an 8-K on January 10, 2012, reporting on the issuance of $500 million in Senior Notes due 2042. This debt offering, facilitated by an Underwriting Agreement with J.P. Morgan Securities LLC and Goldman, Sachs & Co., was registered under a previously filed Form S-3. The notes carry a fixed interest rate of 5.200% and mature on January 15, 2042, with semi-annual interest payments commencing July 15, 2012. These notes represent senior unsecured obligations of the company and rank equally with other existing unsecured and unsubordinated debt. This debt issuance suggests Allstate was seeking to secure long-term financing, potentially for general corporate purposes, to strengthen its capital structure, or to manage its debt maturity profile. Investors should note the fixed interest rate and the long maturity, which could be attractive in a stable or declining interest rate environment. The company's unsecured senior status for these notes means they are subject to the company's overall credit risk.

Key Highlights

  • 1Allstate issued $500 million in Senior Notes due 2042.
  • 2The notes have a fixed annual interest rate of 5.200%.
  • 3Interest payments are semi-annual, starting July 15, 2012, with maturity on January 15, 2042.
  • 4The offering was conducted under an Underwriting Agreement with J.P. Morgan Securities LLC and Goldman, Sachs & Co.
  • 5The notes are senior unsecured obligations, ranking equally with other existing unsecured and unsubordinated debt.
  • 6The issuance was registered under Allstate's Form S-3 registration statement.

Frequently Asked Questions

This 8-K filing is to report on the significant event of The Allstate Corporation entering into an Underwriting Agreement for the offer and sale of $500 million in Senior Notes due 2042.

The notes have a principal amount of $500 million, a fixed annual interest rate of 5.200%, and mature on January 15, 2042. Interest payments will be made semi-annually on January 15 and July 15, with the first payment on July 15, 2012.

The notes are senior unsecured obligations of The Allstate Corporation and rank equally with all other unsecured and unsubordinated indebtedness of the company outstanding from time to time.

The underwriters were J.P. Morgan Securities LLC and Goldman, Sachs & Co., acting as representatives of the several underwriters named in the Underwriting Agreement.