8-KOther EventsExhibits & Filings

ALLSTATE CORP 8-K Report, Corporate Update (Jun 7, 2013)

Filed June 7, 2013For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation (ALL) filed an 8-K on June 7, 2013, to report significant debt and preferred stock issuances. The company successfully raised $1 billion through the sale of senior notes: $500 million of 3.15% Senior Notes due 2023 and $500 million of 4.50% Senior Notes due 2043. These notes are senior unsecured obligations, ranking equally with other outstanding unsecured and unsubordinated debt. In addition to the debt issuance, Allstate also sold 10,000,000 depositary shares, each representing a 1/1000th interest in its Fixed Rate Noncumulative Perpetual Preferred Stock, Series A. This transaction aimed to raise capital through preferred equity. The filing details the underwriting agreements and supplemental indentures related to these offerings, indicating a strategic move by Allstate to manage its capital structure and potentially fund ongoing operations or future growth initiatives.

Key Highlights

  • 1Allstate issued $500 million in 3.15% Senior Notes due 2023.
  • 2Allstate issued $500 million in 4.50% Senior Notes due 2043.
  • 3Total senior notes issuance amounted to $1 billion.
  • 4The senior notes are unsecured and rank equally with other senior unsecured debt.
  • 5Allstate sold 10,000,000 depositary shares, representing preferred stock.
  • 6These transactions were registered under a Form S-3 registration statement.
  • 7The filing includes details on underwriting agreements and supplemental indentures.

Frequently Asked Questions

While the specific use of proceeds is not detailed in this 8-K, such issuances are typically undertaken to manage the company's capital structure, refinance existing debt, fund general corporate purposes, or support strategic initiatives and growth opportunities.

The notes are described as senior unsecured obligations of The Allstate Corporation. This means they rank equally with all other unsecured and unsubordinated indebtedness of the company. Investors should refer to Allstate's overall credit ratings from agencies like Moody's, S&P, and Fitch for a more comprehensive view of its creditworthiness.

The 3.15% Senior Notes due 2023 mature on June 15, 2023, and bear interest at 3.15% per annum, paid semi-annually. The 4.50% Senior Notes due 2043 mature on June 15, 2043, and bear interest at 4.50% per annum, also paid semi-annually. Interest payments began on December 15, 2013.

Depositary shares are typically used to represent ownership in a company's preferred stock, making it easier for investors to trade. Each depositary share in this case represents a 1/1000th interest in a share of Allstate's Series A Fixed Rate Noncumulative Perpetual Preferred Stock, which has a liquidation preference of $25,000 per share.