WASHINGTON BUREAU — Lincoln National Corp. (NYSE:LNC) says it will fully repay the $950 million it owes the federal government under the Troubled Asset Relief Program.
Lincoln, Radnor, Pa., will repay the government for the TARP financing using the proceeds from a public offering of debt and equity securities, the company says in a report filed with the U.S. Securities and Exchange Commission. Lincoln borrowed TARP funds in 2009 through the Treasury Capital Purchase Program.
Hartford Financial Group Services Group Inc., Hartford (NYSE:HIG), also has repaid some of the funds it borrowed from the U.S. Treasury Department to cope with the 2008-2009 capital markets crisis.
Lincoln plans to offer $335 million of common stock and up to $750 million of senior notes to the public.
Up to $500 million will be used to support universal life reserves at Lincoln’s insurance subsidiaries, the company says.
JPMorgan Chase & Company, New York, will be the global coordinator for the offerings, and the underwriters have an option to buy 15% of the amount of common stock available through the public offering, Lincoln says.