FONT-SIZE Plus   Neg

Hartford Financial Services Announces Closing Of Debt Offerings - Quick Facts

Hartford Financial Services Group Inc. (HIG) announced the closing of an offering of $600 million of 7.875% fixed-to-floating rate junior subordinated debentures due in 2042 and an offering of $1.55 billion of senior notes.

The senior note offering consists of $325 million of 4.000% notes due in 2017, $800 million of 5.125% notes due in 2022 and $425 million of 6.625% notes due in 2042.

The company said that it plans to use the proceeds of the offerings to repurchase from Allianz SE , for aggregate consideration of approximately $2.125 billion, all outstanding 10% fixed-to-floating rate junior subordinated debentures due 2068, with an aggregate principal amount of $1.75 billion.

The company said that the repurchases of the debt along with the previously announced purchase of all outstanding warrants entitling Alllianz to purchase 69.35 million shares of the company's common stock are expected to close on April 17, 2012.

The repurchase of the 10% fixed-to-floating rate junior subordinated debentures due 2068 is contingent on a successful consent solicitation to terminate a related replacement capital covenant entered into for the benefit of the holders of the company's outstanding 6.1% senior notes due 2041, or being otherwise permitted by the replacement capital covenant, the company said.

The company said that it commenced the consent solicitation from the holders of the 2041 notes on April 2, 2012.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Shares of Daimler AG were losing around 3 percent in the morning trading, after the German auto giant trimmed its forecast for fiscal 2016 revenues and unit sales, while it backed adjusted EBIT view. Meanwhile, in the third quarter, the company recorded higher earnings and revenues, with increased sales volumes. German software developer SAP SE reported Friday lower profit in its third quarter due to higher stock-based compensation expense. However, revenues were higher. All regions posted improved results. Citing the strong cloud performance, the company said it is confident to deliver a strong fourth quarter, and also raised its full-year 2016 operating profit and revenue outlook. Shares of Ericsson were declining around 3 percent in the early morning trading after the Swedish telecom operator reported Friday a loss in its third quarter as net sales were hurt by weaker demand for mobile broadband, especially in markets with weak macro-economic environment.
comments powered by Disqus
Follow RTT