Lincoln National prices offer at $15 per share

Lincoln National, which markets itself as Lincoln Financial Group, will raise about $600 million from the stock offer.
JUN 17, 2009
By  Bloomberg
The insurer Lincoln National Corp. has priced a stock offering of 40 million shares at $15 per share. The price diclosed late Tuesday represents a less than 1 percent discount from Tuesday's closing price of $15.06. Lincoln National, which markets itself as Lincoln Financial Group, will raise about $600 million from the stock offer. Underwriters have the option to purchase an additional 6 million shares, which would bring the total amount raised to about $690 million. Lincoln National said it plans to use the proceeds from the stock offering for general corporate purposes, including contributing funds to its insurance operating subsidiaries. The sale of common stock is part of a broader plan to raise capital to bolster the insurer's balance sheet and reserves. On Monday, Lincoln National said it would raise more than $2 billion. Included in those efforts, Lincoln National will accept as much as $950 million in capital as part of the government's $700 billion Troubled Asset Relief Program. It was not until last month that the government said it would allow Lincoln and five other major insurers to tap the program for additional capital. Lincoln National had received preliminary approval to receive up to $2.5 billion from the government. As the banking industry accepted billions in government bailout funds last fall, life insurers aggressively lobbied for their own piece of the federal aid, worried about their balance sheets, which had been saddled by hefty investment losses from the declines in the stock market. But the government was slow to approve the requests. Subsequently, the stocks of most public insurance companies fell sharply before recently rebounding somewhat with the broader market. Lincoln National also said it plans to raise $500 million through a senior debt offering. The stock offering is expected to close Monday.

Latest News

Trio of advisors switch for 'Happier' times at LPL Financial
Trio of advisors switch for 'Happier' times at LPL Financial

Former Northwestern Mutual advisors join firm for independence.

Indie $8B RIA adds further leadership talent amid growth drive
Indie $8B RIA adds further leadership talent amid growth drive

Executives from LPL Financial, Cresset Partners hired for key roles.

Stock volatility remained low despite risk events
Stock volatility remained low despite risk events

Geopolitical tension has been managed well by the markets.

Fed minutes to provide signals on rate cuts
Fed minutes to provide signals on rate cuts

December cut is still a possiblity.

Trump's tariff talk roils markets, political leaders
Trump's tariff talk roils markets, political leaders

Canada, China among nations to react to president-elect's comments.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound