Citi-owned Primerica, a distributor of term life insurance, mutual funds, variable annuities and other financial products to middle income households, announced terms for its IPO on Wednesday. The Duluth, GA-based company plans to raise $234 million by offering 18 million shares to the public at a price range of $12-$14.
In a separate private sale, Primerica will sell 17 million shares to Warburg Pincus with warrants to purchase an additional 4.3 million at an exercise price of 120% of the IPO price, as well as the option to purchase an additional $100 million in shares at the IPO price. Warburg Pincus' investment will be capped at the lesser of 24% of common stock oustanding or $230 million worth of common stock.
According to the SEC amendment that was filed earlier this morning, Citi will own between 32% and 46% of the company post IPO, with Warburg Pincus owning between 23% and 33%, depending on whether Warburg exercises its right to purchase additional shares and whether the underwriters exercise their over-allotment option. At the mid-point of the proposed range, Primerica will command a market value of $975 million with 75 million shares outstanding.
Primerica, which was founded in 1977 and booked $2.2 billion in sales last year, plans to list on the NYSE under the symbol PRI. Citi is the lead underwriter on the deal, which is expected to price on Wednesday, March 31st.
