NU Online News Service, Nov. 20, 12:37 p.m. – MetLife Inc., New York, is borrowing $1.25 billion from investors by issuing $1.25 billion in senior notes.
The MetLife offering includes $500 million in 5-year senior notes due Dec. 1, 2006. Those notes pay 5.25% interest.
The offering also includes $750 million in 10-year senior notes due Dec. 1, 2011, which pay 6.125% interest.
Units of Bank of America Corp., Charlotte, N.C., and Lehman Brothers Holdings Inc., New York, are managing the offering.
One rating service, Fitch, Chicago, gave the notes a rating of AA- and set the “rating outlook” at “stable.”
Proceeds from the debt sale will replace commercial paper that MetLife paid down in the third quarter, Fitch says in a commentary on the offering.
MetLife “has used commercial paper to finance working capital needs of MET’s operating subsidiaries and to fund repurchase of corporate stock,” Fitch says.