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
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