Terms

Series

5.125% Subordinated Debentures due 2060

Liquidation Preference

$25.00

Coupon Rate

5.125%

Rate Type

Fixed

Annual Dividend

$1.28

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

November 25, 2025

First Call Price

$25.00

Mandatory Redemption Date

November 25, 2060

Capital Stack Ranking

Junior To: All Current And Future Senior Indebtedness Of Cno, All Liabilities Of Cno Subsidiaries (Structurally Subordinated); Pari Passu With: Indebtedness Ranking On A Parity With The Debentures; Senior To: Common Stock, Securities Ranking On Parity Or Junior To Debentures Upon Liquidation

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

6,000,000

Prospectus Summary

CNO Financial Group, Inc. (NYSE: CNO), a Delaware insurance holding company, is offering $150 million aggregate principal amount of 5.125% Subordinated Debentures due November 25, 2060, priced at $25.00 per debenture and listed on the NYSE under 'CNO PR A.' Interest accrues at a fixed 5.125% annually, paid quarterly on February 25, May 25, August 25, and November 25, beginning February 25, 2021. Although technically debt, these debentures are functionally similar to preferred securities: they are deferrable for up to five consecutive years, with deferred interest compounding quarterly — meaning unpaid interest accumulates and must eventually be paid, making them effectively cumulative in practice. The debentures are unsecured obligations of CNO Financial Group, Inc. (the holding company only) and rank junior to all of CNO's existing and future Senior Indebtedness, which includes the $500M 5.250% Senior Notes due 2025, the $500M 5.250% Senior Notes due 2029, and revolving credit borrowings. Critically, these debentures are structurally subordinated to the $27.1 billion in liabilities held at CNO's insurance and other subsidiaries — holders look solely to holding company assets for repayment. CNO may redeem the debentures early at par if a 'regulatory capital event' occurs within 90 days (where the debentures lose their intended regulatory capital treatment), or at 102% of par within 90 days of a 'rating agency event.' The first optional call at par is November 25, 2025. At the $25.00 offering price, the debentures yield 5.125% annually, or approximately $0.3203 per debenture per quarter. Record dates are the 15th of each payment month (February, May, August, November). Because these are debt obligations, interest payments constitute ordinary income for U.S. holders — they do not qualify for the preferential 15%/20% qualified dividend income rate available to equity preferred shareholders, nor for the corporate dividends-received deduction. If CNO exercises its right to defer interest payments, it is prohibited from paying dividends on or repurchasing its common stock or any pari passu or junior securities until the deferral period ends, providing a meaningful but indirect protection for debenture holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If CNO defers interest on the debentures, it cannot pay dividends on or repurchase its common stock or any securities ranking equally with or junior to the debentures until the deferral ends, subject to limited exceptions.

Other Preferreds from CNO Financial Group Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)