SWS served as a joint bookrunner on a $1.2 billion 5yr and 10yr senior unsecured note offering for The Allstate Corporation. The proceeds will be used to fund a portion of Allstate’s $4 billion National General acquisition which is expected to close in early 2021. Siebert Williams Shank served as a joint bookrunner on the transaction with Academy Securities, Loop Capital and Ramirez & Co. This is a milestone transaction as it is the first time a bond offering of this size has been managed exclusively by minority, women and veteran-owned broker-dealer firms.
The firm kicked-off the week by hosting a series of non-deal fixed income investor calls. SWS’s outreach included Suzanne Shank, CEO & President and Chris Williams, Chairman directly speaking to top tier institutional investors to ensure that Allstate received the highest visibility. Overall, investors appreciated SWS’s level of attention and presence on the investor calls, as well as, Allstate’s efforts to engage diversity banks to manage the offering.
On November 19, 2020, SWS entered the market with initial price talk of +60 area for the 5Y notes and +90 area for the 10Y notes, with guidance down to +40 area (+/-2.5) and +70 area (+/-5), respectively. The deal priced $1.2 billion of 5s and 10s after spreads tightened 22.5 – 25bps through bookbuild. Overall, market receptiveness was very good. The new bonds will fill-in Allstate’s debt maturity profile which currently has a good portion of their obligations at the long end of the curve.
More information can be found in the press release.