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Lincoln National Revamps Deal Financing

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A large insurer has succeeded at efforts to lower its capital costs despite the recent turmoil on Wall Street.

Lincoln National Corp., Philadelphia, says it has completed a recently announced $800 million offering of capital securities that will pay an interest rate of 7% and come due in 2066.

Lincoln used the proceeds from that offering and other offerings of new securities and resales of existing securities to pay off a $2.3 billion “bridge facility,” or temporary financing vehicle, that it used to come up with the cash necessary to complete Lincoln’s recent acquisition of Jefferson-Pilot Corp., Greensboro, N.C.