Fidelity National to use debt to help finance FGL Holdings buyout

By Sarah Lizee

Olympia, Wash., Feb. 7 – Fidelity National Financial, Inc. plans to use debt to help fund its upcoming acquisition of FGL Holdings, according to an 8-K filing with the Securities and Exchange Commission.

Fidelity has agreed to acquire FGL for $12.50 per share of common stock, representing an equity value of about $2.7 billion.

The total financing requirement of $3.3 billion, including all outstanding FGL preferred stock as well as estimated fees and expenses, will be funded with $1.3 billion in Fidelity stock, cash on hand and/or debt.

The acquisition is expected to close in the third quarter and is subject to FGL shareholder approval.

The company noted in an investor presentation that estimated debt to total capitalization is 12.5% pre-transaction and 26.1% post-transaction.

Fidelity is a financial services technology company based in Jacksonville, Fla.

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