Hartford Financial to buy back Allianz 10% debentures and warrants

Company to spend $2.43 billion on April 17 repurchase

By Ashley Montgomery

Kansas City, Kan., April 2 - Hartford Financial Services Group, Inc. has agreed to purchase certain securities from Allianz SE, the company announced in a news release.

Hartford will repurchase all $1.75 billion outstanding of 10% fixed-to-floating-rate junior subordinated debentures due 2068 and all outstanding warrants entitling Allianz to purchase 69.35 million shares of the company's common stock.

The total amount of the repurchase will be $2,425,000,000.

The repurchase date is April 17.

Hartford said it plans to fund the debentures repurchase with an issue of senior notes and junior subordinated debt. The repurchase is subject to the consent of holders of Hartford's 6.1% senior notes due 2041.

The warrants will be purchased for $300 million under the company's $500 million equity repurchase program, the release said.

Following the repurchases, Allianz will hold 5% of Hartford's common stock.

Based in Hartford, Conn., Hartford Financial provides insurance and wealth management services.

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