AXA Equitable Gets Closer to IPO
The company says it will use senior note financing to get itself in shape for a more independent existence.
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AXA Equitable Holdings Inc. is taking a major step toward preparing itself to become more independent from its Paris-based parent, AXA S.A.
AXA Equitable, which has been based in New York for more than 150 years, has announced the price of $3.8 billion in senior notes.
The company hopes to use the cash it gets from the note purchasers to pay off loans from its parent; pay off commercial paper debts associated with a subsidiary, AXA Financial Inc.; and buy units of limited partnerships in AllianceBernstein L.P. from AXA S.A.
AXA S.A. is getting ready to sell some of its AXA Equitable stock to the public through an initial public offering, or IPO.
The financial arrangements AXA Equitable is planning now, ”when effected, will complete the company’s pre-IPO reorganization transactions,” AXA Equitable said Wednesday, in an announcement of the note pricing decisions.
The company plans to issue:
- $800 million in senior notes that will pay a rate of 3.9% and come due in 2023.
- $1.5 billion in notes that will pay 4.35% and come due in 2028.
- $1.5 billion in notes that will pay 5% and come due in 2048.
When AXA Equitable designates the notes as “senior,” that means the holders of the notes would come before some other note holders if AXA Equitable were unable to meet all of its obligations to its lenders.
AXA Equitable said it will issue the notes through a private offering.
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