Summary
MetLife, Inc. (MET) has announced an amendment to its ongoing Consent Solicitation for holders of certain junior subordinated debt and trust securities. The primary purpose of this solicitation is to amend interest payment tests within the supplemental indentures governing these securities. These proposed amendments are designed to mitigate potential interest payment restrictions that could arise following MetLife's recent spin-off of Brighthouse Financial, Inc. Without these changes, the company could face limitations on its ability to make interest payments, potentially requiring it to exchange exchangeable surplus trust securities (X-SURPs) for other debt instruments or restrict interest payments to net proceeds from asset sales within a specific timeframe.
Key Highlights
- 1MetLife has increased the consent fee for its junior subordinated debt and trust securities solicitation from $2.50 to $10.00 per $1,000 principal/liquidation amount.
- 2The expiration date of the Consent Solicitation has been extended from August 23, 2017, to August 25, 2017, with the possibility of further extensions.
- 3The solicitation aims to amend interest payment tests in the indentures to avoid potential restrictions following the spin-off of Brighthouse Financial, Inc.
- 4If amendments are not approved, MetLife could be forced to exchange X-SURPs for other debt, sell common stock to meet interest obligations, or limit payments to net proceeds from asset sales.
- 5The proposed amendments require the consent of at least a majority of outstanding principal/liquidation amount for each series of affected securities.
- 6MetLife has appointed Global Bondholder Services Corporation as the information and tabulation agent, and Goldman Sachs & Co. LLC as the solicitation agent.