Summary
MetLife, Inc. (MET) has filed an 8-K report detailing the closing of a public offering for 1,000,000 shares of its 3.850% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G. This issuance, effective on September 10, 2020, introduces a new class of preferred stock with a liquidation preference of $1,000 per share. The primary implication for investors is the modification of MetLife's ability to pay dividends or repurchase common stock. Specifically, if MetLife fails to declare and pay dividends on this Series G Preferred Stock for any preceding dividend period, it will face restrictions on declaring or paying dividends on its common stock and other junior or parity securities. This highlights the priority of the preferred stockholders' dividend rights.
Key Highlights
- 1MetLife, Inc. closed a public offering of 1,000,000 shares of 3.850% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G.
- 2Each share of Preferred Stock has a liquidation preference of $1,000.
- 3The filing establishes a new class of preferred stock, impacting the company's capital structure.
- 4A key provision restricts MetLife's ability to pay common stock dividends or repurchase common stock if preferred dividends are missed.
- 5The terms and restrictions related to the Preferred Stock are detailed in a Certificate of Designations filed with the Delaware Secretary of State.
- 6The offering was underwritten by a syndicate of prominent financial institutions including BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.