Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K report on May 15, 2006, detailing a significant agreement entered into on May 9, 2006. This report concerns a Remarketing Agreement related to the company's 2.56% senior notes due August 16, 2008, which were originally part of equity units issued in May 2003. The primary purpose of this agreement is to facilitate the remarketing and interest rate reset of these senior notes by designated Remarketing Agents. This action is a required step under the terms of the original equity units. Investors should note that The Hartford will not receive proceeds from this remarketing, as the Senior Notes will be replaced by a portfolio of U.S. Treasury securities.
Key Highlights
- 1The Hartford entered into a Remarketing Agreement on May 9, 2006, concerning its 2.56% senior notes due August 16, 2008.
- 2The agreement involves Merrill Lynch, Goldman Sachs, and J.P. Morgan Securities as Remarketing Agents.
- 3The purpose is to remarket the Senior Notes and reset their interest rate, as mandated by the original equity unit structure.
- 4The Senior Notes will be substituted with a specified portfolio of U.S. Treasury securities.
- 5The Hartford will not receive any proceeds from the remarketing of these notes.
- 6Remarketing Agents are entitled to a fee based on the remarketing proceeds, capped at 0.25% of the Treasury Portfolio Purchase Price or the excess proceeds.
- 7The agreement includes standard indemnification clauses for the Remarketing Agents.