Principal Financial may sell $500 million of debt to fund acquisition

By Devika Patel

Knoxville, Tenn., April 9 – Principal Financial Group, Inc. plans to use cash and a $400 million to $500 million senior debt financing to acquire Wells Fargo & Co.’s Institutional Retirement & Trust business for $1.2 billion.

“We plan to finance the deal through a combination of $400 million to $500 million of senior debt with the remaining portion financed with available capital at the holding company,” chairman, president and chief executive officer Dan Houston said on the company’s conference call announcing the transaction on Tuesday.

Settlement is expected in the third quarter of 2019.

Principal is a retirement savings, investment and insurance products company based in Des Moines.

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