Free Writing Prospectus (to the Preliminary

Filed Pursuant to Rule 433

Prospectus Supplement dated September 5, 2012)

Registration Statement Nos. 333-174438

 

333-174438-04

 

 

$300,000,000 of 3.300% Senior Notes due 2022

$300,000,000 of 4.625% Senior Notes due 2042

 

Final Term Sheet

 

September 5, 2012

 

3.300% Senior Notes due 2022

 

Issuer:

 

Principal Financial Group, Inc.

Expected Ratings (Moody’s / S&P / Fitch)*:

 

A3 (Stable) / BBB+ (Stable) / A- (Stable)

Issue:

 

3.300% Senior Notes due 2022 fully and unconditionally guaranteed by Principal Financial Services, Inc.

Offering Size:

 

$300,000,000

Coupon:

 

3.300% per annum

Trade Date:

 

September 5, 2012

Settlement Date:

 

September 10, 2012

Maturity:

 

September 15, 2022

Treasury Benchmark:

 

UST 1.625% due August 15, 2022

US Treasury Price:

 

100-09+

US Treasury Yield:

 

1.593%

Spread to Treasury:

 

+175 basis points

Re-offer Yield:

 

3.343%

Price to Public (Issue Price):

 

99.636%

Net Proceeds to Issuer (before Expenses):

 

$296,958,000

Interest Payment Dates:

 

Semi-annually on March 15 and September 15, commencing on March 15, 2013

Optional Redemption:

 

At any time in whole or in part at greater of par and make-whole call at a discount rate of Treasury plus 25 basis points, plus accrued and unpaid interest on the date of redemption

CUSIP/ISIN:

 

74251VAE2 / US74251VAE20

 


 

Joint Book-Running Managers:

 

Citigroup Global Markets Inc., Barclays Capital Inc. and Wells Fargo Securities, LLC

Senior Co-Managers:

 

Deutsche Bank Securities Inc., UBS Securities LLC and US Bancorp Investments Inc.

Co-Managers:

 

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets, LLC and Samuel A. Ramirez & Company, Inc.

 

4.625% Senior Notes due 2042

 

Issuer:

 

Principal Financial Group, Inc.

Expected Ratings (Moody’s / S&P / Fitch)*:

 

A3 (Stable) / BBB+ (Stable) / A- (Stable)

Issue:

 

4.625% Senior Notes due 2042 fully and unconditionally guaranteed by Principal Financial Services, Inc.

Offering Size:

 

$300,000,000

Coupon:

 

4.625% per annum

Trade Date:

 

September 5, 2012

Settlement Date:

 

September 10, 2012

Maturity:

 

September 15, 2042

Treasury Benchmark:

 

UST 3.00% due May 15, 2042

US Treasury Price:

 

106-12+

US Treasury Yield:

 

2.686%

Spread to Treasury:

 

+195 basis points

Re-offer Yield:

 

4.636%

Price to Public (Issue Price):

 

99.822%

Net Proceeds to Issuer (before Expenses):

 

$296,841,000

Interest Payment Dates:

 

Semi-annually on March 15 and September 15, commencing on March 15, 2013

Optional Redemption:

 

At any time in whole or in part at greater of par and make-whole call at a discount rate of Treasury plus 30 basis points, plus accrued and unpaid interest on the date of redemption

CUSIP/ISIN:

 

74251VAF9 / US74251VAF94

Joint Book-Running Managers:

 

Citigroup Global Markets Inc., Barclays Capital Inc. and Wells Fargo Securities, LLC

Senior Co-Managers:

 

Deutsche Bank Securities Inc., UBS Securities LLC and US Bancorp Investments Inc.

Co-Managers:

 

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets, LLC and Samuel A. Ramirez & Company, Inc.

 

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The issuer and the guarantor have filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents the issuer and the guarantor have filed with the SEC for more complete information about the issuer and the guarantor and this offering.  You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.  Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at 1-877-858-5407, Barclays Capital Inc. toll-free at 1-888-603-5847 or Wells Fargo Securities, LLC toll-free at 1-800-326-5897.

 

*A securities rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating.  The rating is subject to revision or withdrawal at any time by the assigning rating organization.

 

Any disclaimer or other notices that may appear below are not applicable to this communication and should be disregarded. Such disclaimers were automatically generated as a result of the communication being sent via Bloomberg or another email system.

 

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