DES MOINES, Iowa - F&G Annuities & Life, Inc. (NYSE: FG), a leading provider of insurance solutions, has announced the pricing of a public offering of $550 million in senior notes with a 6.500% interest rate, set to mature in 2029. The offering is scheduled to conclude on June 4, 2024, pending the fulfillment of standard closing conditions.
The notes will be backed on an unsecured, unsubordinated basis by all of F&G's subsidiaries that currently guarantee the company’s obligations under its existing credit agreement. F&G has outlined plans to allocate a portion of the net proceeds from this offering to support a cash tender offer by its wholly owned subsidiary, Fidelity & Guaranty Life Holdings, Inc. (FGLH), for up to $250 million of FGLH's 5.50% Senior Notes due in 2025. T
he remaining proceeds are intended for general corporate purposes, which may include debt management activities such as repurchase, redemption, or repayment upon maturity.
The transaction is being managed by several financial institutions. BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and Wells Fargo (NYSE:WFC) Securities, LLC are serving as the joint book-running managers.
Moreover, Citigroup Global Markets Inc., Citizens JMP Securities, LLC, KeyBanc Capital Markets Inc., and U.S. Bancorp Investments, Inc. are senior co-managers, with Barclays (LON:BARC) Capital Inc., Deutsche Bank (ETR:DBKGn) Securities Inc., Goldman Sachs (NYSE:GS) & Co. LLC, and Morgan Stanley (NYSE:MS) & Co. LLC acting as co-managers for the offering.
The offering is being made through a registration statement, including a prospectus, filed with the U.S. Securities and Exchange Commission (SEC), accessible on the SEC's website.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any security and shall not constitute an offer, solicitation, or sale in any jurisdiction where such an offer, solicitation, or sale would be unlawful.
The information in this article is based on a press release statement, which includes forward-looking statements regarding the anticipated timing and closing of the offering and the use of net proceeds. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
InvestingPro Insights
F&G Annuities & Life, Inc. (NYSE: FG) has recently made headlines with its public offering of senior notes. Investors tracking the company's financial health will find the following metrics from InvestingPro noteworthy.
As of the last twelve months leading up to Q1 2024, F&G has reported a substantial revenue growth of 108.41%, indicating a strong expansion of its business activities. The company's gross profit margin stands at a solid 25.38%, reflecting its ability to maintain profitability amidst its growth trajectory.
In terms of market performance, F&G has demonstrated significant returns, with a 120.1% price total return over the last year. This is complemented by a notable return of 17.09% over the past month, suggesting a robust short-term investment appeal. With a market capitalization of $5.39 billion USD and a P/E ratio of 20.44, the company presents a compelling valuation profile that investors may find attractive.
InvestingPro Tips highlight that analysts predict F&G will be profitable this year, which aligns with the company's own expectations of net income growth. Additionally, the company has been profitable over the last twelve months, which could instill confidence in potential investors considering the current offering.
For those interested in a more comprehensive analysis, there are 6 additional InvestingPro Tips available, which can be accessed through InvestingPro's dedicated page for F&G at https://www.investing.com/pro/FG. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.