8-KMaterial AgreementsOther EventsExhibits & Filings

METLIFE INC 8-K Report, Material Agreement (Aug 15, 2011)

Filed August 15, 2011For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife Inc. (MET) filed an 8-K on August 15, 2011, reporting on two key events. The primary focus is the execution of a new $3 billion, five-year credit agreement, which amends and restates a prior 364-day agreement. This new facility, along with a reduced three-year credit facility, provides MetLife with significant liquidity for general corporate purposes, including backing commercial paper and supporting variable annuity policy and reinsurance requirements. Additionally, the company announced its third-quarter 2011 dividend declarations for its Series A and Series B preferred stocks. This filing indicates MetLife's proactive approach to managing its financial flexibility and its continued commitment to returning value to shareholders through dividends, demonstrating financial stability and operational confidence.

Key Highlights

  • 1Entered into a new $3 billion, five-year credit agreement, effective August 12, 2011.
  • 2The new five-year credit agreement amends and restates a prior 364-day credit agreement.
  • 3Reduced the outstanding commitment under its existing three-year credit facility from $3 billion to $1 billion.
  • 4The combined credit facilities can be used for general corporate purposes, including backing commercial paper and supporting variable annuity policy and reinsurance reserve requirements.
  • 5The total amount available under the current credit agreements can be increased to a maximum of $5 billion, subject to certain conditions.
  • 6MetLife declared third-quarter 2011 dividends for its Series A ($0.2555555 per share) and Series B ($0.4062500 per share) preferred stocks.
  • 7The company is subject to a consolidated net worth requirement of $29.0 billion under the new credit agreements.

Frequently Asked Questions

The new $3 billion, five-year credit agreement provides MetLife with significant financial flexibility for general corporate purposes. This includes its use to back commercial paper issuance and to support variable annuity policy and reinsurance reserve requirements.

Following the filing, MetLife has a $3 billion five-year credit agreement and a reduced $1 billion three-year credit agreement. The total available amount under these current credit agreements can be increased up to $5 billion, provided no event of default has occurred.

Borrowings under the five-year credit agreement must be repaid by August 12, 2016, with letters of credit allowed to remain outstanding until August 12, 2017. For the existing three-year agreement, borrowings are due by October 15, 2013, and letters of credit by October 15, 2014.

MetLife announced its third-quarter 2011 dividends, declaring $0.2555555 per share on its floating rate non-cumulative preferred stock, Series A, and $0.4062500 per share on its 6.50% non-cumulative preferred stock, Series B.