Lincoln National Corp., one of three insurers to get bailed out by the U.S., said Monday it will repay the government with a planned sale of more than $1 billion of stock and debt.
Lincoln plans to sell at least $335 million of common stock and up to $750 million of senior notes. Proceeds from the stock offering and $250 million of notes, as well as cash from the holding company, will be used to repurchase the government's preferred shares. The government took the stake as a condition of Philadelphia-based Lincoln's $950 million rescue last year.
In addition, $500 million from the debt sale will be used "as part of a long-term financing solution" supporting reserves of Lincoln's insurance subsidiaries, the company said.