Conseco Raises $320 Million in Offering

August 15, 2005

Conseco Inc. on Monday closed its previously announced private offering of 3.50 percent Convertible Debentures due Sept. 30, 2035 and completed the amendment of its senior secured credit facility.

The initial purchasers exercised their option to purchase an additional $30 million of debentures, bringing the total principal amount of the offering to $330 million. Net proceeds from the offering of approximately $320 million were applied to repay term loans outstanding under the company’s senior credit facility.

The company expects to recognize an after-tax expense of $2.0 million to $3.0 million during the third quarter of 2005 for the write-off of certain debt issuance costs related to the reduction of the principal amount borrowed under the senior secured credit facility.

The Carmel, Ind.-based insurer provides Medicare supplement, long-term care, cancer, heart/stroke and accident insurance as well as annuities and life insurance products.

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