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).