Jackson Announces Pricing of $750 Million Senior Notes Offering

Rhea-AI Summary

Jackson Financial Inc. (NYSE: JXN) has announced the pricing of a $750 million senior notes offering, divided into two tranches: $400 million of 5.17% notes due 2027 and $350 million of 5.67% notes due 2032. The offering is expected to close on June 8, 2022, pending customary conditions. Proceeds will be used to repay the $750 million principal of an existing term loan due February 22, 2023. An effective registration statement has been filed with the SEC for the offering.

Positive

• Senior notes offering of $750 million indicates strong investor interest.
• Lower interest rates on new notes compared to existing debt could reduce future financial costs.

Negative

• Existing term loan of $750 million due soon could strain cash flow.
• High-interest rates of 5.17% and 5.67% may impact financial flexibility.

LANSING, Mich.--(BUSINESS WIRE)-- Jackson Financial Inc.¹ (NYSE: JXN) (Jackson®) today announced the pricing of a $750 million senior notes offering. The senior notes offering is spread across two tranches, one tranche representing $400 million aggregate principal amount of 5.17% senior notes due 2027 and the other tranche representing $350 million aggregate principal amount of 5.67% senior notes due 2032. The offering is expected to close June 8, 2022, subject to customary closing conditions.

Jackson intends to use the net proceeds from the issuance of the senior notes, together with cash on hand, to repay the $750 million outstanding principal amount of its term loan due February 22, 2023.

Jackson has filed an effective registration statement (including a prospectus) with the Securities and Exchange Commission (SEC) for the offering to which this press release relates. Before you invest, you should read the prospectus supplement and the accompanying prospectus in that registration statement and other documents Jackson has filed with the SEC for more complete information about Jackson and the offering of senior notes. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Jackson, any underwriter or any dealer participating in the offering will arrange to send you the prospectus supplement (including the accompanying prospectus) if you request it by calling Barclays Capital Inc. toll-free at +1-888-603-5847; BofA Securities, Inc. toll-free at +1 (800) 294-1322; Morgan Stanley & Co. LLC toll-free at +1 (866) 718-1649; or Wells Fargo Securities, LLC toll-free at +1 (800) 645-3751.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the senior notes, nor will there be any sale of the senior notes in any jurisdiction in which such offer, solicitation, or sale would be unlawful. Any offer, solicitation, or sale of the senior notes will be made only by means of the prospectus supplement and the accompanying prospectus.

¹ Jackson Financial Inc. is a U.S. holding company and the direct parent of Jackson Holdings LLC (JHLLC). The wholly-owned subsidiaries of JHLLC include Jackson National Life Insurance Company, Brooke Life Insurance Company, PPM America, Inc. and Jackson National Asset Management, LLC.

ABOUT JACKSON

Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all of our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow.

*SQM (Service Quality Measurement Group) Contact Center Awards Program for 2004 and 2006-2021, for the financial services industry (To achieve world-class certification, 80% or more of call-center customers surveyed must have rated their experience as very satisfied, the highest rating possible).

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

SAFE HARBOR STATEMENT

This press release may contain certain statements that constitute “forward-looking statements.” Forward-looking statements generally may be identified by their use of terms including “anticipate,” “estimate,” “believe,” “expect,” “could,” “forecast,” “may,” “intend,” “plan,” “predict,” “project,” “will,” or “would,” and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance, are subject to assumptions, and are inherently susceptible to risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2021 and our other filings with the U.S. Securities and Exchange Commission for a discussion of risks and uncertainties that we face and that could affect our forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions. There can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished. Any forward-looking statements reflect Jackson’s views and assumptions as of the date of this press release and Jackson disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220602006016/en/

Media Contact:

Patrick Rich

patrick.rich@jackson.com

Investor Relations Contact:

Andrew Campbell

andrew.campbell@jackson.com

Source: Jackson Financial Inc.

FAQ

What is the purpose of Jackson Financial's $750 million senior notes offering?

Jackson Financial aims to use the proceeds to repay its $750 million outstanding term loan due February 22, 2023.

When is the expected closing date for the senior notes offering by Jackson Financial?

The expected closing date for the senior notes offering is June 8, 2022.

What are the interest rates for the new senior notes issued by Jackson Financial?

The new senior notes include $400 million at 5.17% due 2027 and $350 million at 5.67% due 2032.

What regulatory body has Jackson Financial filed a registration statement with for the senior notes?

Jackson Financial has filed an effective registration statement with the Securities and Exchange Commission (SEC).