Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on March 13, 2018, disclosing an upcoming underwritten offering of senior notes. The company intends to use a portion of the proceeds to repay its $320 million of 6.300% senior notes maturing on March 15, 2018, with the remainder allocated for general corporate purposes. In conjunction with the note offering, The Hartford also announced plans to amend its existing credit agreement around the end of March 2018. Key changes include lowering the minimum consolidated net worth covenant from $13.5 billion to $9 billion. Additionally, the credit agreement will be automatically replaced with an amended and restated version upon the closing of the Talcott Resolution (life and annuity run-off business) sale, which will involve a reduction in the credit facility size, a new maturity date, and modifications to certain covenants.
Key Highlights
- 1The Hartford commenced an underwritten offering of senior notes.
- 2Proceeds will be used to repay $320 million of senior notes due March 15, 2018.
- 3Remaining proceeds are earmarked for general corporate purposes.
- 4The company plans to amend its credit agreement by the end of March 2018.
- 5The minimum consolidated net worth covenant in the credit agreement will be reduced from $13.5 billion to $9 billion.
- 6The credit agreement will be automatically replaced with an amended and restated version upon the closing of the Talcott Resolution sale.
- 7The sale of Talcott Resolution will lead to a reduction in the credit facility from $1 billion to $750 million and a revised maturity date.