Summary
This 8-K filing by MetLife Inc. (MET) on February 9, 2009, primarily concerns a material modification to the rights of security holders related to its 4.91% Junior Subordinated Debt Securities, Series B, due 2040 (Series B Debentures). These debentures were originally issued in connection with MetLife's 2005 issuance of 6.375% Common Equity Units. The company dissolved Trust III on February 5, 2009, leading to the Series B Debentures being directly held by holders of the Common Equity Units. This action required amendments to the indenture to allow for a remarketing of these debentures.
Key Highlights
- 1MetLife Inc. executed a Seventh Supplemental Indenture on February 6, 2009, modifying terms of its 4.91% Junior Subordinated Debt Securities, Series B, due 2040.
- 2The company dissolved Trust III on February 5, 2009, as permitted by its Declaration of Trust.
- 3This dissolution means holders of MetLife's 6.375% Common Equity Units now directly hold the Series B Debentures.
- 4Amendments to the indenture were necessary to facilitate a remarketing of the Series B Debentures.
- 5The Seventh Supplemental Indenture allows for the remarketing of the Series B Debentures in multiple tranches with varying maturities and interest rates.
- 6The interest rate reset cap set forth in the Declaration of Trust will not apply to the Series B Debentures being remarketed around February 11, 2009.
- 7New redemption provisions for the Series B Debentures are included, and the default period for interest payment has been shortened.
Frequently Asked Questions
The primary purpose of this 8-K filing is to inform investors about the material modification to the rights of security holders, specifically concerning MetLife's 4.91% Junior Subordinated Debt Securities, Series B, due 2040, due to the dissolution of Trust III and the subsequent remarketing of these debentures.
The dissolution of Trust III on February 5, 2009, means that holders of MetLife's 6.375% Common Equity Units will now directly hold a portion of the Series B Debentures, rather than having their interest held through Trust III.
The Series B Debentures are undergoing a remarketing process. The Seventh Supplemental Indenture allows for this remarketing to occur in multiple tranches with different maturities and interest rates. Additionally, new redemption provisions have been introduced, and the period defining an event of default due to missed interest payments has been shortened.
Yes, the interest rate reset cap previously outlined in the Declaration of Trust will not apply to the Series B Debentures that are being remarketed around February 11, 2009. This implies a potential for a different interest rate reset mechanism for these specific securities.