Hartford greenshoe lifts 6% perpetual preferreds to $345 million

By Marisa Wong

Morgantown, W.Va., Nov. 5 – The underwriters of Hartford Financial Services Group, Inc.’s recently priced issue of $25-par series G non-cumulative perpetual preferred stock exercised their $45 million over-allotment option in full, according to an 8-K filing with the Securities and Exchange Commission.

This brings the total issue size to $345 million. Hartford priced $300 million of the $25-par non-cumulative perpetual preferreds (Baa3/BBB-) on Oct. 30 at par with a dividend of 6%, as previously reported.

The offering is expected to close on Tuesday.

The deal was announced with an initial size of $200 million and came in at the low end of talk for a dividend between 6% and 6.125%.

Wells Fargo Securities, LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners. J.P. Morgan Securities LLC is the lead manager.

The preferreds are redeemable at any time prior to Nov. 15, 2023 within 90 days of a rating agency event or a regulatory capital treatment event at $25.50 per share. The preferreds are redeemable at par beginning Nov. 15, 2023.

Hartford plans to use the proceeds for various purposes, which may include repayment of its 6% senior notes due Jan. 15, 2019, the acquisition of Navigators Group and general corporate purposes, such as interest on debt and common stockholders’ dividends.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “HIGPrG.”

Hartford is a Hartford, Conn.-based insurance and financial services provider.

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