Reinsurance Group of America Inc. postponed an offering of $300 million of 40-year junior subordinated debt as yields on corporate bonds climb.
The reinsurer formerly owned by MetLife Inc. began marketing the unsecured notes earlier today to yield 7 to 7.125 percent, according to a person with knowledge of the transaction. The debt was expected to pay a fixed rate for the first 10 years before switching to floating-rate payments, according to a regulatory filing.
The offering, intended to fund general corporate purposes, was expected to be rated Baa2 by Moody’s Investors Service, said the person, who asked not to be identified because terms weren’t set.
Yields on debt rated in that tier due in 15 years or more increased to 5.94 percent on Aug. 16 from 5.71 percent on Aug. 9, the biggest weekly increase in eight periods, according to the Bank of America Merrill Lynch 15+ Year BBB US Corporate Index. Yields have climbed 27 basis points since July 31.
Sally Smith, an RGA spokeswoman, didn’t immediately return a telephone call.
Editors: John Parry, Shannon D. Harrington