The Hartford has launched cash tender offers to buy back $800 million of senior debt.

As part of this plan, the company expects to reduce its debt outstanding by approximately $1 billion. This includes a previously announced intention to repay 2013 and 2014 debt maturities totaling $520 million, as well as the effect of the tender offers, net of a proposed new issue of long-term senior debt securities that The Hartford intends to issue, subject to market conditions, as described below.

The offer is detailed below

an Offer (the “First Tranche Dutch Auction Offer”) to purchase up to $300 million (subject to increase, the “First Tranche Dutch Auction Tender Cap”) aggregate principal amount of the “First Tranche Dutch Auction Notes” set forth in the table below;

an Offer (the “Second Tranche Dutch Auction Offer”) to purchase up to $150 million (subject to increase, the “Second Tranche Dutch Auction Tender Cap”) aggregate principal amount of the “Second Tranche Dutch Auction Notes” set forth in the table below, in each case at a purchase price determined in accordance with the procedures of a modified “Dutch Auction”; and

together, with Hartford Life, Inc. with respect to two series of notes issued by Hartford Life, Inc. indicated in the table below, an Offer (the “Waterfall Offer”) to purchase up to $350 million (subject to increase, the “Waterfall Tender Cap”) aggregate principal amount of the “Waterfall Notes” set forth in the table below, each at a price determined by reference to a fixed spread above the bid-side yield on the applicable reference security and accepted in accordance with the acceptance priority level set forth in the table below.

The Hartford intends, as part of its overall capital management plan, to issue, subject to market conditions, new long-term senior debt securities in an amount equal to all or a portion of the amount purchased or expected to be purchased in the Waterfall Tender Offer.

More information on the offer can be found here. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE