Filed pursuant to Rule 424(b)(3) and (c)
Registration Number 333-98043
PROSPECTUS SUPPLEMENT
(to prospectus dated November 7, 2002)
HORACE MANN EDUCATORS CORPORATION
$353,500,000
SENIOR CONVERTIBLE NOTES DUE 2032
AND THE COMMON STOCK ISSUABLE UPON
CONVERSION OF THE SENIOR CONVERTIBLE NOTES
This prospectus supplement supplements our prospectus dated November 7, 2002 relating to the sale by certain of our securityholders, or by their transferees, pledgees, donees or other successors, of up to $353,500,000 aggregate principal amount of our senior convertible notes due 2032 and the common shares issuable upon the conversion of the notes. You should read this supplement in conjunction with the prospectus. This supplement is qualified by reference to the prospectus, except to the extent the information in this supplement supersedes the information contained in the prospectus.
Investing in the notes involves risks.
See “Risk Factors” beginning on page 13 of the prospectus.
Neither the Securities and Exchange Commission nor any other state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
SELLING SECURITYHOLDERS
The following table provides information regarding the principal amount of notes beneficially owned by certain of our selling securityholders, the percentage of outstanding notes held by these selling securityholders, the number of our common shares beneficially owned by these selling securityholders, the number of our common shares each selling securityholder would beneficially own upon conversion of its entire principal amount of notes and the percentage of our outstanding common shares held by these selling securityholders.
The table below supersedes the table of securityholders contained on pages 57 through 59 of the prospectus. This information was furnished to us by the selling securityholders listed below on or before November 8, 2002. Because selling securityholders may trade all or some of the notes listed at any time without notifying us, the table below may not reflect the exact value of notes held by each selling securityholder on the date of this supplement.
The date of this prospectus supplement is November 14, 2002.
| Number of Shares of | ||||||||||||||||||||
| Principal Amount of | Number of Shares of | Common Stock | ||||||||||||||||||
| Notes Beneficially | Common Stock | Underlying the | Percentage of | |||||||||||||||||
| Owned and Offered | Percentage of Notes | Beneficially Owned | Notes and Offered | Common Stock | ||||||||||||||||
| Name of Selling Securityholder (1) | Hereby | Outstanding (2) | (3) | Hereby (4) (5) | Outstanding (6) | |||||||||||||||
1976 Distribution Trust FBO Jane A.
Lauder |
$ | 36,000 | * | 0 | 639 | 0 | ||||||||||||||
1976 Distribution Trust FBO A.R.
Lauder/Zinterhofer |
18,000 | * | 0 | 319 | 0 | |||||||||||||||
2000 Revocable Trust FBO A.R.
Lauder/Zinterhofer |
18,000 | * | 0 | 319 | 0 | |||||||||||||||
Advent Convertible Master Cayman
L.P. |
13,636,000 | 4.54 | 0 | 242,216 | 0 | |||||||||||||||
Aid Association for Lutherans, as
successor to Lutheran Brotherhood |
3,000,000 | * | 0 | 53,289 | 0 | |||||||||||||||
AIG DKR SoundShore Opportunity
Holding Fund Ltd. (formerly DKR
Fixed Income Holding Fund Ltd.) |
2,500,000 | * | 0 | 44,407 | 0 | |||||||||||||||
Akela Capital Master Fund, Ltd. |
3,000,000 | * | 0 | 53,289 | 0 | |||||||||||||||
Allentown City Firefighters Pension
Plan |
63,000 | * | 0 | 1,119 | 0 | |||||||||||||||
Allentown City Officers & Employees
Pension Fund |
48,000 | * | 0 | 852 | 0 | |||||||||||||||
Allentown City Police Pension Plan |
76,000 | * | 0 | 1,349 | 0 | |||||||||||||||
Alpha US Sub Fund 4, LLC |
1,486,000 | * | 0 | 26,395 | 0 | |||||||||||||||
Arapahoe County Colorado |
138,000 | * | 0 | 2,451 | 0 | |||||||||||||||
Argent Classic Convertible
Arbitrage Fund L.P. |
1,800,000 | * | 0 | 31,973 | 0 | |||||||||||||||
Argent Classic Convertible
Arbitrage Fund (Bermuda) Ltd. |
3,200,000 | 1.06 | 0 | 56,841 | 0 | |||||||||||||||
Argent LowLev Convertible Arbitrage
Fund LLC |
300,000 | * | 0 | 5,328 | 0 | |||||||||||||||
Argent LowLev Convertible Arbitrage
Fund Ltd. |
3,500,000 | 1.16 | 0 | 62,170 | 0 | |||||||||||||||
Arlington County Employees
Retirement System |
1,500,000 | * | 0 | 26,644 | 0 | |||||||||||||||
Banc of America Securities LLC |
2,750,000 | * | 0 | 48,848 | 0 | |||||||||||||||
British Virgin Islands Social
Security Board |
197,000 | * | 0 | 3,499 | 0 | |||||||||||||||
Calamos Market Neutral Fund —
Calamos Investment Trust |
6,000,000 | 2.00 | 0 | 106,578 | 0 | |||||||||||||||
City of New Orleans |
568,000 | * | 0 | 10,089 | 0 | |||||||||||||||
City University of New York |
341,000 | * | 0 | 6,057 | 0 | |||||||||||||||
Clinton Convertible Managed Trading
Account I Limited |
4,700,000 | 1.56 | 0 | 83,486 | 0 | |||||||||||||||
Clinton Multistrategy Master Fund,
Ltd. |
12,800,000 | 4.26 | 0 | 227,366 | 0 | |||||||||||||||
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| Number of Shares of | ||||||||||||||||||||
| Principal Amount of | Number of Shares of | Common Stock | ||||||||||||||||||
| Notes Beneficially | Common Stock | Underlying the | Percentage of | |||||||||||||||||
| Owned and Offered | Percentage of Notes | Beneficially Owned | Notes and Offered | Common Stock | ||||||||||||||||
| Name of Selling Securityholder (1) | Hereby | Outstanding (2) | (3) | Hereby (4) (5) | Outstanding (6) | |||||||||||||||
Clinton Riverside Convertible
Portfolio Limited |
$ | 14,300,000 | 4.76 | 0 | 254,010 | 0 | ||||||||||||||
Consulting Group Capital Markets
Funds |
200,000 | * | 0 | 3,552 | 0 | |||||||||||||||
Context Convertible Arbitrage Fund |
1,000,000 | * | 0 | 17,763 | 0 | |||||||||||||||
Convertible Securities Fund |
130,000 | * | 0 | 2,309 | 0 | |||||||||||||||
Credit Suisse First Boston
Corporation |
2,500,000 | * | 0 | 44,407 | 0 | |||||||||||||||
Credit Suisse First Boston Europe
Limited |
35,000,000 | 11.65 | 0 | 621,705 | 0 | |||||||||||||||
DBAG London |
855,000 | * | 0 | 15,187 | 0 | |||||||||||||||
Georgia Municipal Employee Benefit
System |
1,624,000 | * | 0 | 28,847 | 0 | |||||||||||||||
Grady Hospital Foundation |
300,000 | * | 0 | 5,328 | 0 | |||||||||||||||
Hamilton Multi-Strategy Master
Fund, L.P. |
4,000,000 | 1.33 | 0 | 71,052 | 0 | |||||||||||||||
HFR CA Select Fund |
1,000,000 | * | 0 | 17,763 | 0 | |||||||||||||||
HFR Convertible Arbitrage Account |
1,313,000 | * | 0 | 23,322 | 0 | |||||||||||||||
Highbridge International LLC |
43,000,000 | 14.31 | 0 | 763,809 | 0 | |||||||||||||||
Independence Blue Cross |
918,000 | * | 0 | 16,306 | 0 | |||||||||||||||
JP Morgan Securities Inc. |
8,000,000 | 2.66 | 58 | 142,104 | * | |||||||||||||||
KBC Convertible Opportunities Fund |
7,000,000 | 2.33 | 0 | 124,341 | 0 | |||||||||||||||
Lyxor |
2,588,000 | * | 0 | 45,970 | 0 | |||||||||||||||
Lyxor Master Fund Ref: Argent/
LowLev CB |
800,000 | * | 0 | 14,210 | 0 | |||||||||||||||
McMahan Securities Co. L.P. |
10,000,000 | 3.33 | 0 | 177,630 | 0 | |||||||||||||||
Merrill Lynch Insurance Group |
741,000 | * | 0 | 13,162 | 0 | |||||||||||||||
Merrill Lynch, Pierce, Fenner &
Smith Incorporated |
226,000 | * | 0 | 4,014 | 0 | |||||||||||||||
Minnesota Power and Light |
368,000 | * | 0 | 6,536 | 0 | |||||||||||||||
Municipal Employees |
511,000 | * | 0 | 9,076 | 0 | |||||||||||||||
Nations Convertible Securities Fund |
9,870,000 | 3.28 | 0 | 175,320 | 0 | |||||||||||||||
New Orleans Firefighters Pension/
Relief Fund |
308,000 | * | 0 | 5,471 | 0 | |||||||||||||||
Occidental Petroleum Corporation |
588,000 | * | 0 | 10,444 | 0 | |||||||||||||||
Ohio Bureau of Workers Compensation |
399,000 | * | 0 | 7,087 | 0 | |||||||||||||||
Policeman and Firemen Retirement
System of the City of Detroit |
1,405,000 | * | 0 | 24,957 | 0 | |||||||||||||||
Pro-mutual |
1,683,000 | * | 0 | 29,895 | 0 | |||||||||||||||
Quattro Fund Ltd. |
3,000,000 | * | 0 | 53,289 | 0 | |||||||||||||||
SAM Investments LDC |
12,500,000 | 4.16 | 0 | 222,037 | 0 | |||||||||||||||
San Diego County Employees
Retirement Association |
3,000,000 | * | 0 | 53,289 | 0 | |||||||||||||||
Shell Pension Trust |
891,000 | * | 0 | 15,826 | 0 | |||||||||||||||
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| Number of Shares of | ||||||||||||||||||||
| Principal Amount of | Number of Shares of | Common Stock | ||||||||||||||||||
| Notes Beneficially | Common Stock | Underlying the | Percentage of | |||||||||||||||||
| Owned and Offered | Percentage of Notes | Beneficially Owned | Notes and Offered | Common Stock | ||||||||||||||||
| Name of Selling Securityholder (1) | Hereby | Outstanding (2) | (3) | Hereby (4) (5) | Outstanding (6) | |||||||||||||||
State of Maryland Retirement Agency |
$ | 7,215,000 | 2.40 | 0 | 128,160 | 0 | ||||||||||||||
Sunrise Partners Limited Partnership |
2,500,000 | * | 0 | 44,407 | 0 | |||||||||||||||
Sutton Brook Capital Portfolio, LP |
29,000,000 | 9.65 | 0 | 515,127 | 0 | |||||||||||||||
Tag Associates |
344,000 | * | 0 | 6,110 | 0 | |||||||||||||||
Teachers Insurance and Annuity
Association |
18,400,000 | 6.12 | 0 | 326,839 | 0 | |||||||||||||||
The Coast Fund L.P. |
2,500,000 | * | 0 | 44,407 | 0 | |||||||||||||||
The Grable Foundation |
208,000 | * | 0 | 3,694 | 0 | |||||||||||||||
Trustmark Insurance |
776,000 | * | 0 | 13,784 | 0 | |||||||||||||||
Wachovia Bank National Association |
27,645,000 | 9.20 | 0 | 491,058 | 0 | |||||||||||||||
Wachovia Securities International
Ltd. |
23,500,000 | 7.82 | 0 | 417,430 | 0 | |||||||||||||||
White River Securities LLC |
11,000,000 | 3.66 | 0 | 195,393 | 0 | |||||||||||||||
Wolverine Trading LP |
2,500,000 | * | 0 | 44,407 | 0 | |||||||||||||||
Zazove Hedged Convertible Fund L.P. |
3,000,000 | * | 0 | 53,289 | 0 | |||||||||||||||
Zazove Income Fund L.P. |
2,000,000 | * | 0 | 35,526 | 0 | |||||||||||||||
Zurich Institutional Beachmark
Master Fund Ltd |
400,000 | * | 0 | 7,105 | 0 | |||||||||||||||
Zurich Institutional Beachmarks
Master Fund Ltd |
3,000,000 | * | 0 | 53,289 | 0 | |||||||||||||||
Zurich Institutional Benchmark
Management
c/o Quattro Global Capital, LLC |
800,000 | * | 0 | 14,210 | 0 | |||||||||||||||
| * | Less than 1%. | |
| (1) | Also includes any sale of the notes and the underlying common stock by pledgees, donees, transferees or other successors in interest that receive such securities by pledge, gift, distribution or other non-sale related transfer from the named selling securityholders. Information about other selling securityholders will be set forth in future prospectus supplements or in other documents that we file from time to time with the Securities and Exchange Commission that are incorporated by reference in the prospectus, if required. See “Where You Can Find More Information.” | |
| (2) | Based on $300,500,000 aggregate principal amount of notes outstanding as of November 12, 2002. | |
| (3) | Excludes common stock issuable upon conversion of the selling securityholder’s notes. | |
| (4) | Assumes conversion of all of the selling securityholder’s notes at a conversion rate of 17.763 per note and a cash payment in lieu of the issuance of any fractional share interest. However, this conversion rate is subject to adjustment as described under “Description of the Notes — Conversion Rights.” As a result, the number of common stock issuable upon conversion of the notes may increase or decrease in the future. | |
| (5) | Reflects rounding down of fractional common stock issuable to each selling securityholder upon conversion of the notes. | |
| (6) | Calculated based on Rule 13d-3 of the Securities Exchange Act of 1934 using 40,853,319 shares of common stock outstanding as of October 31, 2002. In calculating this amount, we did not treat as outstanding the common stock issuable upon conversion of notes. |
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