Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on March 31, 2010, to report a significant material definitive agreement. The company entered into a Repurchase Agreement with the U.S. Department of the Treasury to repurchase all 3,400,000 shares of its Series E Fixed Rate Cumulative Perpetual Preferred Stock for $3.4 billion, plus a final accrued dividend of $21.7 million. This preferred stock, along with a warrant to purchase common stock, was originally issued to the Treasury in June 2009 as part of the Troubled Asset Relief Program (TARP) Capital Purchase Program. This repurchase signifies The Hartford's ability to exit the TARP program and return capital to the government. The agreement also outlines the company's obligation regarding the warrant by April 15, 2010, with The Hartford having previously announced its intention not to repurchase the warrant. The filing also includes a press release announcing this transaction, reinforcing the company's progress in managing its financial obligations and strengthening its capital structure.
Key Highlights
- 1The Hartford repurchased $3.4 billion of its Series E preferred stock from the U.S. Department of the Treasury.
- 2This transaction marks a step towards exiting the Troubled Asset Relief Program (TARP).
- 3The repurchase included a final accrued dividend payment of $21.7 million.
- 4The original issuance to the Treasury in June 2009 included both preferred stock and a warrant to purchase common stock.
- 5The company must address the Treasury's warrant by April 15, 2010.
- 6The Hartford has publicly stated its intention not to repurchase the warrant.
- 7The filing includes the Repurchase Letter Agreement and a related press release as exhibits.