8-KOther EventsExhibits & Filings

HARTFORD INSURANCE GROUP, INC. 8-K Report, Corporate Update (Aug 19, 2019)

Filed August 19, 2019For Securities:HIGHIG-PG

Summary

The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on August 19, 2019, detailing the closing of a significant debt offering. The company successfully issued $600 million in 2.800% Senior Notes due 2029 and $800 million in 3.600% Senior Notes due 2049, totaling $1.4 billion in aggregate principal amount. These notes are unsecured senior obligations and rank equally with other unsecured and unsubordinated debt. A portion of the proceeds from this new debt issuance was used to retire approximately $588.9 million of its own 5.125% Senior Notes due 2022 and $105.4 million of The Navigators Group, Inc.'s 5.75% Senior Notes due 2023 through a cash tender offer, with the remainder to be redeemed. This debt refinancing strategy indicates a proactive approach to managing its capital structure and potentially lowering its overall cost of borrowing.

Key Highlights

  • 1The Hartford successfully issued $1.4 billion in new senior notes: $600 million of 2.800% notes due 2029 and $800 million of 3.600% notes due 2049.
  • 2The closing of the senior notes sale occurred on August 19, 2019.
  • 3Proceeds were used for general corporate purposes and to retire existing debt, including a tender offer for its own 5.125% Notes due 2022 and Navigators' 5.75% Notes due 2023.
  • 4The new senior notes are unsecured and rank equally with other senior unsecured and unsubordinated indebtedness of the company.
  • 5The company can redeem the 2029 notes prior to maturity under specific conditions and terms, with a call premium based on Treasury rates plus 20 basis points.
  • 6The company can redeem the 2049 notes prior to maturity under specific conditions and terms, with a call premium based on Treasury rates plus 25 basis points.
  • 7The debt offering was registered under the company's Form S-3 registration statement (File No. 333-231592).

Frequently Asked Questions

The Hartford issued a total of $1.4 billion in new senior notes, consisting of $600 million of 2.800% Senior Notes due 2029 and $800 million of 3.600% Senior Notes due 2049.

A portion of the net proceeds was used to retire approximately $588.9 million of the company's 5.125% Senior Notes due 2022 and $105.4 million of The Navigators Group, Inc.'s 5.75% Senior Notes due 2023 through a tender offer. The remainder of the proceeds will be used for general corporate purposes.

The 2029 Notes can be redeemed at the company's option prior to May 19, 2029, at a price based on the present value of remaining payments plus a spread to Treasury rates, or at par on or after May 19, 2029. The 2049 Notes can be redeemed at the company's option prior to February 19, 2049, at a price based on the present value of remaining payments plus a spread to Treasury rates, or at par on or after February 19, 2049.

The new Senior Notes are unsecured senior obligations of the company and rank equally with all other unsecured and unsubordinated indebtedness of The Hartford.