Summary
MetLife, Inc. (MET) has filed an 8-K report detailing significant capital-raising activities through the sale of common stock and equity units. On March 2, 2011, MetLife entered into underwriting and pricing agreements for the sale of approximately 146.8 million shares of common stock at $43.25 per share, and 40 million common equity units at $82.88 per unit. These offerings, conducted under a previously filed shelf registration statement, represent a substantial effort to raise capital and potentially alter the company's capital structure. The filings also note an accounting adjustment related to the repurchase of preferred stock, which will reduce net income available to common shareholders by approximately $145 million in Q1 2011, but will not impact operating earnings.
Key Highlights
- 1MetLife Inc. sold approximately 146.8 million shares of common stock at $43.25 per share on March 2, 2011.
- 2The company also issued 40 million common equity units at $82.88 per unit.
- 3These offerings were conducted under a Form S-3 shelf registration statement filed on November 30, 2010.
- 4The transactions involved American International Group (AIG) and ALICO Holdings LLC as selling securityholders.
- 5A repurchasing of MetLife's Series B Contingent Convertible Junior Participating Non-Cumulative Perpetual Preferred Stock will occur in Q1 2011.
- 6This preferred stock repurchase is expected to reduce net income available to common shareholders by approximately $145 million ($0.14 per share) but will not affect operating earnings.
- 7The filing includes related underwriting and pricing agreements as exhibits.