The Hartford Financial Services Group, Inc. (NYSE: HIG) today announced
that it has priced an offering of 52.253 million shares of its common
stock at a price of $27.75 per share. In addition, The Hartford
announced it has priced a concurrent offering of 20 million depositary
shares, each representing a 1/40th interest in The Hartford’s
7.25% Mandatory Convertible Preferred Stock, Series F at a price of $25
per depositary share.
The underwriters for the respective offerings will have a 30-day option
to purchase up to an additional 15 percent of the original issuance
amount, or approximately 8 million shares, of common stock and up to an
additional 3 million depositary shares, in each case at the public
offering price less the underwriting discount. The closing is expected
to occur on or about March 22, 2010.
The Hartford plans to use the net proceeds of the offerings, together
with proceeds from a planned debt offering and available funds to
repurchase in full the $3.4 billion of The Hartford’s preferred shares
issued to the U.S. Treasury Department under Treasury’s Capital Purchase
Program once it has received approval to do so. Following the
repurchase, the U.S. Treasury Department will continue to hold a warrant
to purchase approximately 52 million shares of The Hartford’s common
stock at an exercise price of $9.79 per share, subject to adjustment.
The Hartford does not intend to repurchase the warrant.
About The Offering
Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are acting as joint
bookrunning managers for the offerings of common stock and depositary
shares, each representing a 1/40th interest in a share of
7.25% Mandatory Convertible Preferred Stock, Series F.
The proposed offerings will be made only by means of a prospectus and
related prospectus supplement, which may be obtained by visiting the
SEC’s website at www.sec.gov
or by contacting Goldman, Sachs & Co., Attention: Prospectus Department,
85 Broad Street, New York, NY 10004, telephone: 866-471-2526, fax:
212-902-9316, email: Prospectus-ny@ny.email.gs.com
or by contacting J.P. Morgan Securities Inc. via Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717,1-866-803-9204.
About The Hartford
Celebrating nearly 200 years, The Hartford (NYSE: HIG) is an
insurance-based financial services company that serves households,
businesses and employees by helping to protect their assets and income
from risks, and by managing wealth and retirement needs. A Fortune 500
company, The Hartford is recognized widely for its service expertise and
as one of the world's most ethical companies.
HIG-F
This news release shall not constitute an offer to sell or a
solicitation to buy any securities, nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Some of the statements in this release may be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of
1995. We caution investors that these forward-looking statements are not
guarantees of future performance, and actual results may differ
materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include those discussed in our Annual Report for
fiscal year 2009 on Form 10-K and the other filings we make with the
Securities and Exchange Commission. We assume no obligation to update
this release, which speaks as of the date issued.
