An insurer is trying to use Wall Street money to release about $300 million now locked in statutory capital.
Lincoln National Corp., Philadelphia, says it has priced an offering of $375 million of 6.30% senior notes that will be due in 2037.
“Lincoln intends to use the net proceeds to fund a new wholly owned insurance subsidiary to reinsure a portion of statutory reserves required under Actuarial Guideline 38,” Lincoln says.
Lincoln plans to use some of the $375 million in capital that it hopes the transaction will release to buy back shares and support future business growth, the company says.
The underwriter of the offering is a unit of Goldman Sachs Group Inc., New York.