Lincoln Financial Takes Bailout Money
June 16, 2009 at 5:06 AM (PT)
LINCOLN FINANCIAL MEDIA parent LINCOLN NATIONAL will be taking nearly $1 billion in Troubled Asset Relief Program bailout money in a move that will also include selling its British insurance business, issuing $950 million in preferred stock to the government in exchange for the TARP funds, and issuing over $500 million in new senior debt and $600 million in new common stock.
$1 billion of the total funding from TARP and the new stock and debt will be used for the LINCOLN NATIONAL LIFE INSURANCE CO. and $1 billion will be used for "general corporate purposes."
The company is the second insurer to take the TARP money among six who have been approved for the funds.