Summary
MetLife, Inc. (MET) filed an 8-K on June 1, 2015, detailing a significant capital management transaction. The company completed a public offering of 1,500,000 shares of its 5.250% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C. This offering was accompanied by a Replacement Capital Covenant, which restricts MetLife and its subsidiaries from repaying, redeeming, or purchasing these Series C Preferred Shares before December 31, 2018, unless funded by specific replacement capital securities. Additionally, on the same date, MetLife announced a tender offer to purchase all outstanding 6.500% Non-Cumulative Preferred Stock, Series B. For any Series B Preferred Shares not tendered, the company will proceed with their redemption. These actions indicate MetLife's strategic efforts to manage its capital structure and potentially optimize its preferred stock offerings.
Key Highlights
- 1Completion of a public offering for 1,500,000 shares of 5.250% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C.
- 2Entry into a Replacement Capital Covenant, effective June 1, 2015, restricting redemption/repurchase of Series C Preferred Shares until December 31, 2018, unless from replacement capital.
- 3The Replacement Capital Covenant is intended to benefit holders of certain long-term indebtedness, initially the 10.750% Fixed-to-Floating Rate Junior Subordinated Debentures due 2069.
- 4Commencement of a tender offer to purchase all outstanding 6.500% Non-Cumulative Preferred Stock, Series B.
- 5Announcement of redemption for any Series B Preferred Shares not purchased in the tender offer.
- 6Filing of legal opinion from Willkie Farr & Gallagher LLP regarding the validity of the Series C Preferred Shares.
- 7News release dated June 1, 2015, announcing the tender offer and redemption of Series B Preferred Shares.