8-KOther EventsExhibits & Filings

ALLSTATE CORP 8-K Report, Corporate Update (Jan 4, 2013)

Filed January 4, 2013For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation (ALL) filed an 8-K report on January 4, 2013, announcing its entry into an Underwriting Agreement to offer and sell $500 million in aggregate principal amount of 5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053. This issuance, which was registered under a Form S-3, represents a strategic move by Allstate to raise capital through debt financing. Investors should note that this filing concerns a debt offering, not equity. The subordinated nature of these debentures means they rank lower in priority than senior debt in the event of bankruptcy. The fixed-to-floating rate structure suggests potential adjustments to the interest rate over time, which could impact future interest expenses and investor returns. The primary purpose of this debt issuance is likely to support the company's general corporate purposes or specific strategic initiatives.

Key Highlights

  • 1Allstate Corporation entered into an Underwriting Agreement on January 3, 2013.
  • 2The company plans to issue $500,000,000 in aggregate principal amount of subordinated debentures.
  • 3The debentures will carry a 5.100% fixed rate initially and are convertible to a floating rate.
  • 4The debentures have a maturity date of 2053, indicating a long-term debt issuance.
  • 5The issuance was registered under Allstate's Form S-3 registration statement (File No. 333-181059).
  • 6Key underwriters include J.P. Morgan Securities LLC, Goldman, Sachs & Co., and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
  • 7This filing pertains to a debt offering, not an equity offering.

Frequently Asked Questions

The main purpose of this 8-K filing is to report on The Allstate Corporation's entry into an Underwriting Agreement to issue and sell $500 million of subordinated debentures due in 2053.

Allstate is issuing 5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053. This is a type of debt security.

Subordinated debentures are debt instruments that rank below other more senior debt in the event of a company's liquidation or bankruptcy. This means that holders of subordinated debt would be paid after holders of senior debt have been fully repaid.

The 'Fixed-to-Floating Rate' feature means that the debentures will initially pay a fixed interest rate of 5.100%. At some point in the future, the interest rate will convert to a floating rate, which will be based on a benchmark interest rate plus a spread, making the future interest payments variable.