allstate corp (ALL) Snapshot

According to two people close to the matter, The Resolution Group, TPG Capital, L.P., and J.C. Flowers & Co. LLC are bidding for The Allstate Corporation’s (NYSE:ALL) Lincoln Benefit Life Company. One person seeking anonymity stated that TPG and J.C. Flowers have teamed up to bid for the insurance subsidiary, which could be valued at $500 million to $900 million. People added that Goldman Sachs is handling the sale. The news report stated that Goldman, Resolution and TPG declined to comment. J.C. Flowers was not immediately available for comment.

The Allstate Corporation expects to purchase portions of its $4.3 billion of outstanding debt at a premium. The company expects to retire about $3 billion of outstanding senior and subordinated bonds by utilizing a combination of preferred stock, debt and cash. It will also repay or pre-fund $1.2 billion of debt maturing this year and next.

The Allstate Corporation commenced tender offers for certain of its outstanding debt securities as part of the company's recently announced proactive capital management plan. This plan includes cash tenders and proposed new issuances of preferred stock, subordinated 'hybrid' debt and senior debt, and is intended to enhance the company's strategic and capital flexibility. The terms and conditions of the First Tranche Waterfall Offer, Second Tranche Waterfall Offer and Any and All Offer are described in the offer to purchase dated May 22, 2013 and the related letter of transmittal. Acceptance of Notes with respect to each First Tranche Waterfall Offer and Second Tranche Waterfall Offer is subject to proration if such Offer is oversubscribed. If any Notes are purchased in an Offer, Notes tendered at or prior to the applicable Early Tender Time will be accepted for purchase in priority to other Notes tendered in the same Offer after the applicable Early Tender Time. Accordingly, if the First Tranche Waterfall Tender Cap or Second Tranche Waterfall Tender Cap is reached in respect of tenders made at or prior to the applicable Early Tender Time, no First Tranche Waterfall Notes or Second Tranche Waterfall Notes, respectively, that are tendered after the applicable Early Tender Time will be accepted for purchase. Following the applicable Early Tender Time and prior to the applicable Expiration Time, Allstate may, but is not obligated, with respect to any Offer, elect to accept the Notes validly tendered at or prior to the applicable Early Tender Time, provided that all conditions to such Offer have been satisfied or waived by Allstate and settle such Notes at such time or promptly thereafter. The "Final Settlement Date" with respect to an Offer is the date that Allstate settles all Notes not previously settled on the applicable Early Settlement Date, if any, and Allstate expects such date to be one business day following the applicable Expiration Time. The Early Settlement Date is expected to be on June 13, 2013, and the Final Settlement Date is expected to be on June 20, 2013, in each case subject to change without notice. Allstate refers to each of the Early Settlement Date and the Final Settlement Date as a "Settlement Date".