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Retirement Planning > Spending in Retirement > Required Minimum Distributions

Lincoln Moves To Finance UL Reserves

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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.