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Principal Financial Group, Inc. Prices Senior Notes Offering

05/18/2009

DES MOINES, Iowa--(BUSINESS WIRE)--May. 18, 2009-- Principal Financial Group, Inc. (NYSE: PFG) announced today that it has priced its offering of senior notes. A total of $400 million of 5-year fixed-rate senior notes was issued with a coupon rate of 7.875 percent, and a total of $350 million of 10-year fixed-rate senior notes was issued with a coupon rate of 8.875 percent. The proceeds will primarily be used to refinance the existing $441 million of notes due on August 15, 2009, with the remaining proceeds being used for general corporate purposes, including funding the operations of the company’s life insurance and other subsidiaries.

Citi, Credit Suisse and Deutsche Bank Securities are the joint book-running managers of the offering. Barclays Capital, Morgan Stanley, UBS Investment Bank and Wachovia Securities are senior co-managers, and RBS and The Williams Capital Group, L.P. are co-managers.

The notes are being offered pursuant to the Company’s effective shelf registration statement on file with the Securities and Exchange Commission. A prospectus supplement and the accompanying base prospectus may be obtained upon request from Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, telephone 1-800-221-1037.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any jurisdiction. Any offer, solicitation or sale will be made only by means of the prospectus supplement and the accompanying base prospectus.

Forward looking and cautionary statements

This press release contains forward-looking statements, including, without limitation, statements as to operating earnings, net income available to common stockholders, net cash flows, realized and unrealized losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and opinions. The company does not undertake to update or revise these statements, which are based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their effects on the company may not be those anticipated, and actual results may differ materially from the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute to such material differences are discussed in the company's annual report on Form 10-K for the year ended December 31, 2008, and in the company's quarterly report on Form 10-Q for the quarter ended March 31, 2009, filed by the company with the Securities and Exchange Commission, as updated or supplemented from time to time in subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit market conditions that may significantly affect the company’s ability to meet liquidity needs, access to capital and cost of capital; difficult conditions in the global capital markets and the general economy, which the company does not expect to improve in the near future, that may materially adversely affect the company’s business and results of operations; the actions of the U.S. government, Federal Reserve and other governmental and regulatory bodies for purposes of stabilizing the financial markets might not achieve the intended effect; the risk from acquiring new businesses, which could result in the impairment of goodwill and/or intangible assets recognized at the time of acquisition; impairment of other financial institutions that could adversely affect the company; investment risks which may diminish the value of the company’s invested assets and the investment returns credited to customers, which could reduce sales, revenues, assets under management and net income; requirements to post collateral or make payments related to declines in market value of specified assets may adversely affect company liquidity and expose the company to counterparty credit risk; changes in laws, regulations or accounting standards that may reduce company profitability; fluctuations in foreign currency exchange rates that could reduce company profitability; Principal Financial Group, Inc.’s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and regulatory restrictions on the ability of subsidiaries to pay such dividends; competitive factors; volatility of financial markets; decrease in ratings; interest rate changes; inability to attract and retain sales representatives; international business risks; a pandemic, terrorist attack or other catastrophic event; and default of the company’s re-insurers.

About the Principal Financial Group

The Principal Financial Group® (The Principal®)1 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $236.6 billion in assets under management2 and serves some 18.8 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

1 "The Principal Financial Group" and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

2 As of March 31, 2009

 

Source: Principal Financial Group, Inc.

Principal Financial Group, Inc.
Media Contact:
Susan Houser, 515-248-2268
Houser.Susan@principal.com
or
Investor Relations:
Tom Graf, 515-235-9500
investor-relations@principal.com

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