Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on March 15, 2018, announcing the successful closing of a $500 million offering of 4.400% Senior Notes due 2048. This offering was conducted under a registration statement filed previously and involved Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as underwriters. The company utilized a portion of the net proceeds from this new debt issuance to fully repay its outstanding $320 million in 6.300% senior notes due in 2018. The remaining proceeds are designated for general corporate purposes. This strategic move suggests a proactive approach to debt management, potentially lowering interest expenses and extending the company's debt maturity profile.
Key Highlights
- 1Closed a $500 million offering of 4.400% Senior Notes due March 15, 2048.
- 2Used proceeds to fully repay $320 million of 6.300% senior notes due 2018.
- 3The new senior notes are unsecured and rank equally with existing unsecured and unsubordinated indebtedness.
- 4Interest on the new notes is payable semi-annually at 4.400% per annum.
- 5The company has the option to redeem the notes prior to maturity, with specific terms outlined for early redemption based on Treasury rates or at par value.
- 6Customary representations, warranties, covenants, and indemnification provisions are included in the underwriting agreement.
- 7The issuance was facilitated by Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as underwriters.