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.