Citi-owned Primerica, a distributor of term life insurance, mutual funds, variable annuities and other financial products to middle income households, filed an amendment with the SEC filing on Tuesday indicating a private share sale to Warburg Pincus of up to $230 million concurrent with its IPO. Warburg was also granted the option to purchase an additional $100 million in shares at the IPO price. Primerica, which is based in Duluth, GA and was founded in 1977 as A.L. Williams & Associates, initially filed last November to raise $100 million in its IPO; however, we suspect the deal size will increase significantly given the size of the business ($2.2 billion in sales booked in 2009). Though the amendment did not specify Warburg's stake in the company post IPO, it indicates that the New York-based private equity firm will not own more than 35% of the voting power of Primerica's outstanding securities. Citi is the sole underwriter on the deal, for which pricing terms and timing has yet to be disclosed.
