Unum Group raised $300 million through the issuance of 5.25% senior unsecured notes due December 15 2035, receiving a long‑term issue credit rating of BBB+ (Good) with a stable outlook from AM Best.
The proceeds will be used to repay $275 million of senior unsecured notes that matured on November 5 2025, providing the company with additional liquidity and a lower‑cost debt profile. This refinancing aligns with Unum’s ongoing strategy to manage leverage and maintain a strong interest‑coverage ratio.
The issuance follows a history of debt issuances, including a $400 million 2054 note in June 2024 and a $600 million 2051 note in 2021. AM Best’s affirmation of the BBB+ rating reflects confidence in Unum’s ability to service debt and its disciplined capital‑structure management.
Unum’s debt profile remains stable, with leverage expected to stay in the 24‑25% range after the offering and interest coverage projected to remain above 12×. The new notes therefore support the company’s financial flexibility without materially increasing risk.
While the market reaction to the announcement was muted, the issuance is part of a broader effort to optimize the capital structure amid a favorable interest‑rate environment and to position the company for future growth opportunities.
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