The Hartford Financial Services Group Inc. said Tuesday it will use funds raised from debt and equity offerings as part of a plan to repay the $3.4 billion it borrowed from the government under the Troubled Asset Relief Program in 2009.
The Hartford, which ran into problems after investments by its life operations plummeted during the 2008 financial crisis, will repurchase preferred shares it issued to the U.S. Treasury, the Hartford, Conn.-based insurer said in a statement.
The Hartford said the offerings will consist of $1.45 billion of common stock, and $500 million of mandatory, convertible preferred stock represented by depository shares. The debt offering, The Hartford said, consists of $425 million senior notes.
Additionally, The Hartford said it will pre-fund the repurchase of its senior debt maturing in 2010 and 2011 through the issuance of an additional $675 million of senior notes.
“We appreciate the critical role the government and the American taxpayers have played in stabilizing the financial markets and we are pleased to announce a plan to repurchase Treasury’s investment in fewer than 10 months,” said Liam McGee, chairman, president and CEO of The Hartford, in a statement. “The Hartford always viewed the investment as temporary capital and intended to return it as soon as prudent.”