The Hartford Completes Capital Raise; Plans to Return Treasury Investment
March 23 2010 - 10:30AM
Business Wire
The Hartford Financial Services Group, Inc. (NYSE: HIG) today
announced that it has completed its previously announced equity and
debt offerings as part of its plan to fully repurchase the $3.4
billion of The Hartford’s preferred shares issued to the U.S.
Treasury under Treasury’s Capital Purchase Program (CPP).
“We were pleased with the execution of the capital raise,” said
Liam E. McGee, The Hartford’s Chairman, President and Chief
Executive Officer. “There was a high level of investor interest in
our offerings and pricing was favorable, reflecting confidence in
The Hartford’s future. With the funds secured, we are moving
forward with our plans to repurchase Treasury’s preferred
shares.”
Investors purchased 59.59 million shares of The Hartford’s
common stock; 23 million depositary shares, each representing a
1/40th interest in a share of The Hartford’s 7.25% Mandatory
Convertible Preferred Stock, Series F; and $1.1 billion of its
senior notes, consisting of $300 million of its 4.00% Senior Notes
due 2015, $500 million of its 5.50% Senior Notes due 2020 and $300
million of its 6.625% Senior Notes due 2040. The number of
securities sold in the common stock and depositary shares offerings
included 7.3 million shares of common stock and 3 million
depositary shares issued to the underwriters of those offerings
upon the exercise of their respective options to purchase
additional securities.
The Hartford plans, subject to approval, to use $425 million of
the net proceeds from the debt offering, together with the net
proceeds of its common stock and depositary shares offerings and
available funds, to repurchase the $3.4 billion of preferred shares
issued to the U.S. Treasury under Treasury’s Capital Purchase
Program. Remaining proceeds from the senior notes offering are
planned to be used to pre-fund the maturity of The Hartford’s
senior debt maturing in 2010 and 2011.
About The Offering
Goldman, Sachs & Co. and J.P. Morgan Securities Inc. acted
as joint bookrunning managers for the offering of common stock and
depositary shares.
Goldman, Sachs & Co., J.P. Morgan Securities Inc., Citigroup
Global Markets Inc., Credit Suisse Securities (USA) LLC and Wells
Fargo Securities, LLC acted as joint bookrunning managers for the
offering of senior notes.
About The Hartford
Celebrating nearly 200 years, The Hartford (NYSE: HIG) is an
insurance-based financial services company that serves households,
businesses and employees by helping to protect their assets and
income from risks, and by managing wealth and retirement needs. A
Fortune 500 company, The Hartford is recognized widely for its
service expertise and as one of the world's most ethical
companies.
HIG-F
This news release shall not constitute an offer to sell or a
solicitation to buy any securities, nor shall there be any sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction. These offerings were made only by means of a
prospectus and related prospectus supplement, which may be obtained
by visiting the SEC’s website at www.sec.gov or by contacting
Goldman, Sachs & Co., Attention: Prospectus Department, 85
Broad Street, New York, NY 10004, telephone: 866-471-2526, fax:
212-902-9316, email: Prospectus-ny@ny.email.gs.com or by
contacting J.P. Morgan Securities Inc. via Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone:
1-866-803-9204.
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in our Annual Report for
fiscal year 2009 on Form 10-K and the other filings we make with
the Securities and Exchange Commission. We assume no obligation to
update this release, which speaks as of the date issued.
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