Hartford Financial Services Group Inc. announced Tuesday that it had completed its previously announced equity and debt offerings so that it can repay the Treasury for its Capital Purchase Program funding.
Hartford, which ran into problems after investments by its life operations plummeted in value during the 2008 financial crisis, is to repurchase preferred shares it issued to the Treasury. The government bought $3.4 billion of preferred shares from the Connecticut insurance company last year.
The insurer plans, subject to approval, to use $425 million of the net proceeds from the debt offering, together with the net proceeds of its common stock and depositary shares offerings and available funds, to repurchase the preferred shares, and the remaining proceeds are to be used to fund its senior debt maturing in 2010 and 2011.
