F&G Annuities & Life, Inc. (NYSE:FG) has successfully completed a public offering of $375 million in junior subordinated notes due in 2065, the company disclosed today. The life insurance firm, headquartered in Des Moines, Iowa, stated the 7.300% notes were issued under an indenture agreement with Citibank, N.A., serving as trustee.
The offering, which took place today, was part of a larger registration statement filed with the Securities and Exchange Commission (SEC) on October 1, 2024. The notes will pay interest quarterly, starting April 15, 2025, and maturing on January 15, 2065. F&G has the option to defer interest payments for up to five years during which interest will continue to accrue.
F&G intends to utilize the net proceeds from the notes offering for general corporate purposes, which may include repurchasing, redeeming, or repaying its outstanding debt. The underwriting agreement for the offering was reached with Wells Fargo (NYSE:WFC) Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co (NYSE:MS). LLC, and RBC Capital Markets, LLC on January 6, 2025.
The notes, described as junior unsecured subordinated obligations, can be redeemed by F&G at its discretion after January 15, 2030, at a redemption price of 100% of the principal amount, plus any accrued and unpaid interest. Additionally, F&G reserves the right to redeem the notes in the event of a Tax Event, Regulatory Capital Event, or Rating Agency Event as defined in the indenture.
This financial maneuver is part of F&G's broader strategy to manage its capital and debts effectively. The company's forward-looking statements indicate the offering's potential benefits, although they are subject to various risks and uncertainties.
The information in this article is based on a press release statement and the SEC filing by F&G Annuities & Life, Inc.
In other recent news, F&G Annuities & Life, Inc. has been making significant strides in its financial performance. The company recently priced a public offering of $375 million in junior subordinated notes due in 2065 for general corporate purposes, as disclosed in an SEC filing. The underwriting of the offering was handled by several firms, including Wells Fargo Securities, BofA Securities, and J.P. Morgan Securities.
In terms of earnings and revenue, F&G reported a substantial financial performance in the third quarter, with gross sales reaching $3.9 billion, marking a 39% increase year-over-year, and assets under management (AUM) hitting a record high of $62.9 billion. The company's adjusted net earnings for the quarter were $156 million, or $1.22 per share, reflecting a 21% increase from the previous year.
These developments are part of F&G's broader strategy, which includes a focus on retirement savings products, pension risk transfers, and diversification of investment opportunities. In recent developments, pension risk transfer sales surpassed $300 million in Q3, contributing to a total of $2.1 billion for the first ten months of 2023. Record retail sales from agency bank and broker-dealer channels totaled $3.5 billion for the quarter, signaling a positive trajectory for the company.
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