Lincoln Financial has announced the early results of its cash tender offer for a range of its outstanding securities, which includes various senior and subordinated notes as well as capital securities. Notable offerings include the 4.375% Senior Notes due 2050 and the 4.350% Senior Notes due 2048. The company has decided to increase the maximum buyout amount for these securities from $375 million to $420 million.
As of May 23, 2025, the early tender deadline, Lincoln Financial reported that an impressive aggregate principal amount of $812.8 million in securities had been validly tendered. This includes $264.4 million in subordinated securities, highlighting investor confidence in the company’s offerings.
The tender offer for these securities is set to expire on June 10, 2025. However, due to the overwhelming response by the early deadline, the company does not anticipate accepting any additional securities tendered after this initial deadline. Specified acceptance priority levels will determine which securities are purchased, adhering to the increased aggregate offer cap established.
The company will compensate holders of validly tendered securities with a tender offer consideration that includes an early tender premium, reflecting the company’s efforts to attract participation in the offer. The anticipated early settlement date for accepted securities is May 29, 2025.
Lincoln Financial’s proactive approach in managing its debt portfolio signifies its commitment to maintaining a strong financial position while catering to its investors’ interests. Investors will benefit from this initiative, which aims to streamline the company’s financial operations and potentially enhance future long-term profitability.
This move is seen as a strategic effort to bolster Lincoln Financial’s balance sheet, as the company continues to navigate a dynamic financial landscape while ensuring its offerings remain attractive to current and prospective investors.