Corebridge Financial, Inc. (NYSE:CRBG), a life insurance company, disclosed on Thursday that it has issued $750 million in junior subordinated notes due in 2054. The notes carry a 6.3% fixed-to-fixed reset rate, with the company stating the proceeds will be used for repaying existing debt and general corporate purposes.
The Houston-based insurer, formerly known as SAFG Retirement Services, Inc., stated that it used a portion of the net proceeds to repay the $250 million drawn from its 3-Year Delayed Draw Term Loan Agreement dated February 25, 2022. This loan was managed by JPMorgan Chase (NYSE:JPM) Bank, N.A., as the administrative agent.
The transaction involved an underwriting agreement dated September 5, 2024, with BNP Paribas (OTC:BNPQY) Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co (NYSE:MS). LLC, and Wells Fargo (NYSE:WFC) Securities, LLC serving as the representatives of the underwriters.
Corebridge's financial maneuvering comes as part of its broader capital management strategy. The company's filing also included documents related to the sale of the notes, including the underwriting agreement and opinions from Debevoise & Plimpton LLP regarding the validity of the notes.
In other recent news, Corebridge Financial has been the subject of multiple analyst notes. Barclays (LON:BARC) initiated coverage on the company, setting a price target of $33 and assigning an Equalweight rating. The firm acknowledged Corebridge's strategic positioning to leverage secular tailwinds, despite the credit risks in its investment portfolio.
Similarly, Deutsche Bank (ETR:DBKGn) revised its price target for Corebridge to $33, maintaining a Hold rating influenced by the company's second-quarter results.
Corebridge Financial reported strong operating results for the second quarter of 2024, with a 9% year-over-year increase in operating earnings per share. Premiums and deposits also saw a significant rise of 17% from the previous year, reaching a total of $11.7 billion.
In a strategic move, Corebridge Financial entered into a share repurchase agreement with American International Group (NYSE:AIG), planning to buy back shares for an aggregate purchase price of around $200 million. This action reflects the company's commitment to managing shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.