Hartford Financial accepts all consents from holders of 6.1% notes

By Toni Weeks

San Diego, April 13 - Hartford Financial Services Group, Inc. said it accepted all consents validly delivered by noon ET April 13 from the holders of its 6.1% senior notes due 2041, according to a company news release.

Hartford received and accepted consents from holders of at least a majority of the notes, which allowed the termination of the replacement capital covenant it entered into in connection with its issuance of $1.75 billion principal amount of 10% fixed-to-floating-rate junior subordinated debentures due 2068.

Under the terms of the replacement capital covenant, Hartford could only repurchase, redeem or repay the debentures if a specific portion of the funds used are proceeds from the sale of equity or certain equity-like securities and if that sale took place within a specified time period prior to the repurchase, redemption or repayment. With the termination of the replacement capital covenant, Hartford may now repurchase, redeem or repay any or all of the debentures regardless of the source of the funds.

All holders who validly delivered their consent by the expiration time will receive a consent fee of $17.50 per $1,000 principal amount of the notes. The consent fee will be paid on April 16.

Previously, the company increased the consent fee from $10.00 and extended the solicitation from 5 p.m. ET on April 11 and, prior to that, 5 p.m. ET on April 10. The consent solicitation began April 2.

Citigroup Global Markets Inc. (800 558-3745) and Goldman Sachs & Co. (800 828-3182) are the solicitation agents. The information and tabulation agent is Global Bondholder Services Corp. (866 540-1500).

Hartford provides insurance and wealth management services. The company is based in Hartford, Conn.

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