Summary
The Hartford Financial Services Group, Inc. (HIG) announced on September 16, 2021, the commencement of a proposed offering of new senior notes. The primary purpose of this offering is to raise capital to fully redeem its outstanding $600 million of 7.875% Fixed-To-Floating Rate Junior Subordinated Debentures due 2042. These existing debentures are redeemable at par starting April 15, 2022. This move signals a proactive approach by The Hartford to manage its capital structure and potentially reduce its cost of borrowing. Investors should note that the completion of the senior notes offering and the subsequent redemption of the debentures are subject to market conditions and other factors, and there is no guarantee that the redemption will occur. The company has filed a preliminary prospectus supplement detailing the offering.
Key Highlights
- 1The Hartford initiated a proposed offering of new senior notes on September 16, 2021.
- 2The capital raised will be used to redeem $600 million of outstanding 7.875% Fixed-To-Floating Rate Junior Subordinated Debentures due 2042.
- 3The existing debentures are callable at par on or after April 15, 2022.
- 4This action is intended to optimize the company's debt structure and potentially lower interest expenses.
- 5The pricing and settlement of the new notes, as well as the actual redemption, are contingent on market conditions and other factors.
- 6The company has filed a preliminary prospectus supplement to detail the notes offering.