The Hartford Completes Plan To Raise Capital, Will Repay Treasury

NU Online News Service, March 24, 3:36 p.m. EDT

The Hartford Financial Services Group Inc. has completed its previously announced equity and debt offerings, part of the insurer's plan to repay the $3.4 billion it borrowed from the Treasury under the Troubled Asset Relief Program.

Last week The Hartford said it was planning an offering that would include $1.45 billion of common stock, $500 million of mandatory convertible preferred stock and $425 million in cash, for a total of $2.375 billion.

Yesterday, the company announced it had completed the offering and will move forward with repaying the Treasury.

The Hartford said investors purchased 59.59 million shares of its common stock, 23 million depositary shares and $1.1 billion of its senior notes.

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 said it 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.

Remaining proceeds from the senior notes offering, said The Hartford, are planned to be used to pre-fund the maturity of The Hartford's senior debt maturing in 2010 and 2011.

"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."