Lincoln Financial Media Parent To Pay Back TARP Debt
June 15, 2010 at 4:21 AM (PT)
LINCOLN FINANCIAL MEDIA parent LINCOLN NATIONAL CORP. has announced that it will pay back the U.S. government in cash and stock for the equity stake issued to the government as part of the Troubled Asset Relief Program (TARP) bailout after selling off stock and notes.
LINCOLN plans to sell over $335 million in stock and $750 million of senior notes to finance the payback. The proceeds, plus $250 million of notes, would enable the company to buy back $950 million of preferred shares issued to the federal government under the Treasury Capital Purchase Program and shore up LINCOLN's insurance operations' reserves. The federal government will hold onto warrants for 13 million shares at $10.92 per share.