Horace Mann Closes Additional $37.7 M Principal Amount Of Convertible Notes

June 6, 2002

Illinois-based Horace Mann Educators Corporation, which specializes in insurance products for educators, has closed the sale of $37.7 million aggregate principal amount of 3.00 percent senior convertible notes due May 14, 2032.

The initial purchasers of the convertible notes exercised their option to acquire these additional convertible notes, bringing the total aggregate principal amount of the convertible note offering to $353.5 million resulting in net proceeds to Horace Mann Educators Corporation of $163.7 million. The closing of the sale of the $315.8 million aggregate principal amount ($146.3 million of net proceeds) of convertible notes was announced on May 14.

The notes will be convertible at the option of the holders into shares of Horace Mann Educators Corporation common stock at a conversion price of $26.74. The net proceeds from the note offering have been used in part for repayment of bank debt.