Hartford ups consent fee for 6.1% notes, extends offer until Friday

By Susanna Moon

Chicago, April 11 - Hartford Financial Services Group, Inc. extended the consent solicitation for its 6.1% senior notes due 2041 until noon ET on April 13 and sweetened the offer by raising the consent fee by 75%.

The company will now pay a consent fee of $17.50 per $1,000 principal amount of notes for which consents are delivered by the end of the offer, if the company receives the needed consents to amend the notes. The consent fee was increased from $10.00.

The Hartford had pushed back the solicitation deadline by one day to 5 p.m. ET on April 11, then amended the offer later in the afternoon after discussions with noteholders, according to a company press release. The solicitation had originally been set to end at 5 p.m. ET on April 10. The offer began on April 2.

As previously noted, the company is soliciting consents to terminate 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. Holders must be of record as of 5 p.m. ET on March 30.

Under the terms of the replacement capital covenant, Hartford may 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, according to a previous press release. If the proposed termination becomes effective, Hartford will be able to repurchase, redeem or repay any or all of the debentures regardless of the source of the funds.

The proposed termination of the replacement capital covenant requires, among other conditions, the consent of holders of a majority of the notes.

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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