Terms

Series

4.250% Junior Subordinated Debentures due 2061

Liquidation Preference

$25.00

Coupon Rate

4.25%

Rate Type

Fixed

Annual Dividend

$1.06

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

June 15, 2026

First Call Price

$25.00

Mandatory Redemption Date

June 15, 2061

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Senior Indebtedness Including ~$1.5 Billion Of Senior Notes, All Subsidiary Liabilities Including Policyholder Obligations (~$17.7 Billion); Pari Passu With: 5.275% Junior Subordinated Debentures Due 2057, 6.125% Junior Subordinated Debentures Due 2056 (Being Redeemed); Senior To: Common Stock, Capital Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

13,000,000

Prospectus Summary

Globe Life Inc. (NYSE: GL), an insurance holding company, is issuing $325 million of 4.250% Junior Subordinated Debentures due June 15, 2061, priced at $25 per debenture and listed on NYSE under 'GLPRD.' The debentures pay interest at a fixed 4.250% annual rate quarterly on March 15, June 15, September 15, and December 15, beginning September 15, 2021. These are debt instruments, not preferred equity, and interest is cumulative in practice: Globe Life may defer payments for up to five consecutive years, but all deferred interest (including compounding at 4.250%) must be repaid in full at period-end, meaning non-payment is delayed rather than forgiven. The debentures mature June 15, 2061, and are callable at par on or after June 15, 2026. The debentures are unsecured junior subordinated obligations of Globe Life Inc. (the holding company), ranking junior to approximately $1.5 billion of senior notes and pari passu with $125 million of existing junior subordinated debentures. Because Globe Life is a holding company that conducts all operations through regulated insurance subsidiaries, the debentures are also structurally subordinated to all subsidiary liabilities—approximately $17.7 billion including policyholder obligations—meaning subsidiary creditors are paid before holders of these debentures receive anything from subsidiary assets. Prior to June 15, 2026, Globe Life may redeem the debentures upon a 'regulatory capital event'—if Globe Life becomes subject to capital adequacy regulation under which the debentures fail to qualify as regulatory capital—at par plus accrued interest; this provision protects the issuer's capital flexibility if its regulatory environment changes materially. At the $25 issue price, the debentures yield exactly 4.250%, generating approximately $0.2656 per debenture per quarter ($1.0625 annually). Because these instruments are classified as indebtedness for U.S. federal income tax purposes, interest payments are ordinary income—they do not qualify for the 15%/20% qualified dividend income (QDI) rate for individual investors, nor for the dividends-received deduction (DRD) for corporate holders. Record dates fall on the 1st of the month preceding each payment date (March 1, June 1, September 1, December 1). If Globe Life defers interest, a dividend stopper activates: no dividends may be paid on common stock or junior securities until all deferred interest is cleared, providing indirect protection to debenture holders, though investors should note that during a deferral period they would owe taxes on accruing OID income without receiving cash.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Globe Life exercises its right to defer interest payments on the debentures, it is blocked from paying dividends or making distributions on its common stock or junior securities, and from making payments on parity or junior debt, until all deferred interest is paid in full.

Other Preferreds from Globe Life Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 64 (Strong)