The Hartford Financial Services Group Inc. has announced that it will use funds raised from debt and equity offerings as part of a plan to repay the $3.4 billion it got from the government under the Troubled Asset Relief Program in 2009.
Hartford, which ran into problems after investments by its life insurance operations plummeted in value during the 2008 financial crisis, said on Tuesday that it will repurchase preferred shares it issued to the Treasury. The offerings will include $1.45 billion of common stock and $500 million of mandatory, convertible preferred stock represented by depository shares, it said, and the debt offering consists of $425 million in senior notes. The insurer also will prefund the repurchase of its senior debt maturing in 2010 and 2011 through the issuance of $675 million of senior notes.
