CNO Financial Group Completes Amendment to Senior Secured Credit Facility

  CNO Financial Group Completes Amendment to Senior Secured Credit Facility

PR Newswire

CARMEL, Ind., May 20, 2013

CARMEL, Ind., May 20, 2013 /PRNewswire/ --CNO Financial Group, Inc. (NYSE:
CNO) reported today that it has successfully completed the previously
announced amendment to its senior secured credit facility.

The changes to the senior secured credit facility include:

  oRe-pricing of the following:

       o$225.0 million four-year term loan from LIBOR +3.25% with 1.00% LIBOR
         floor to LIBOR+2.25% with 0.75% LIBOR floor, for an overall decrease
         of 125 basis points
       o$406.2 million six-year term loan from LIBOR + 3.75% with 1.25% LIBOR
         floor to LIBOR+2.75% with 1.00% LIBOR floor, for an overall decrease
         of 125 basis points

  oModification for mandatory prepayments resulting from any Restricted
    Payments (as defined in our credit facility), including share repurchases
    and shareholder dividends.

       o100% prepayment for every $1 of Restricted Payments if Debt to Total
         Capitalization is greater than 25.0% (previously 22.5%)
       o33.3% prepayment for every $1 of Restricted Payments if Debt to Total
         Capitalization is less than or equal to 25.0% and greater than 20.0%
         (previously less than or equal to 22.5% but greater than 17.5%)
       oThere will be no required prepayment if Debt to Total Capitalization
         is less than or equal to 20.0% (previously 17.5%)

In addition to amended pricing and mandatory prepayment provisions, there were
other modest adjustments made to provide additional flexibility.

"We are very pleased with the results of the re-pricing," said Fred Crawford,
Chief Financial Officer of CNO. "This amendment will reduce our annual cash
interest expense by nearly $8 million and allow us greater flexibility in
managing our excess capital. These changes are consistent with CNO's
continued strong performance and our ratings upgrade from S&P."

The principal balance outstanding under the senior secured credit facility
remains at $631 million and no changes were made to the current amortization
schedule. The amendment will reduce annual interest expense recognized in
earnings by $6 million, including the amortization of transaction related
costs. CNO expects to record a pretax charge of approximately $2 million in
the second quarter of 2013 as a result of this transaction.

About CNO
CNO is a holding company. Our insurance subsidiaries – principally Bankers
Life and Casualty Company, Washington National Insurance Company and Colonial
Penn Life Insurance Company – serve pre-retiree and retired Americans by
helping them protect against financial adversity and provide for a more secure
retirement. For more information, visit CNO online at www.CNOinc.com.

SOURCE CNO Financial Group, Inc.

Website: http://www.CNOinc.com
Contact: (News Media) Barbara Ciesemier, +1.312.396.7461, (Investors) Erik
Helding, +1.317.817.4760