RGA Announces Pricing Of Trust PIERS Units and Senior Notes

December 13, 2001
ST. LOUIS, Dec 13, 2001 (BUSINESS WIRE) -- Reinsurance Group of America, Incorporated (NYSE:RGA) announced today that it has priced $225 million of Trust PIERS units, and provided the underwriters with a 30-day option to purchase up to an additional $33,750,000 to cover over-allotments. The offering is scheduled to close on December 18, 2001.

The Trust PIERS units include a trust preferred security issued by a business trust formed by RGA and a warrant to purchase common stock of RGA. Each warrant gives the holder the right to purchase 1.25 shares of RGA common stock at an effective exercise price of $39.98 per share, representing a premium of 23 percent over the closing price of RGA common stock of $32.50 on December 12, 2001.

Under the terms of the offering, the Trust PIERS units have a maturity of 49 years, with a coupon of 5.75 percent. RGA has applied to list the units on the New York Stock Exchange.

RGA expects to use the proceeds from the offering for general corporate purposes. Lehman Brothers and Banc of America Securities are acting as underwriters for the Trust PIERS units offering.

Additionally, the company announced that it has priced $200 million of non-callable Senior Notes due December 15, 2011. The notes were priced with a coupon of 6.75 percent and an issue price of 99.922 percent. Interest is payable semi-annually in June and December. The offering is scheduled to close on December 19, 2001 and is conditioned on the completion of the Trust PIERS units offering.

Proceeds from the Senior Notes offering will be used to repay outstanding borrowings under RGA's $140 million revolving credit facility with a banking syndicate and a $75 million term loan from a subsidiary of MetLife Inc., RGA's majority shareholder. Banc of America Securities, Lehman Brothers, BNY Capital Markets, Inc., Fleet Securities, Inc. and A.G. Edwards & Sons, Inc. are acting as underwriters on the senior notes offering.

The Senior Notes and the Trust PIERS units are being issued under a shelf registration previously declared effective by the Securities and Exchange Commission.

This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such states. The offerings are being made only by the prospectus and prospectus supplement related to each offering. To obtain a copy of the prospectus relating to either offering, please contact Lehman Brothers at 790 Seventh Avenue, New York, New York 10019.

Reinsurance Group of America, Incorporated, through its subsidiaries, RGA Reinsurance Company and RGA Life Reinsurance Company of Canada, is among the largest providers of life reinsurance in North America. In addition to its North American operations, Reinsurance Group of America, Incorporated has subsidiary companies, branch offices or representative offices in Argentina, Australia, Barbados, Hong Kong, Japan, Mexico, South Africa, Spain, Taiwan and the United Kingdom. Worldwide, the Company has approximately $586 billion of life reinsurance in force, and assets of $6.5 billion. Metropolitan Life Insurance Company is the beneficial owner of approximately 58 percent of RGA's outstanding shares.

"Preferred Income Equity Redeemable Securities"(SM) and "PIERS"(SM) are service marks owned by Lehman Brothers Inc.

    SOURCE: Reinsurance Group of America, Incorporated
CONTACT:          Reinsurance Group of America, Incorporated
                  Jack B. Lay, 636/736-7439

URL:              http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire.  All rights reserved.