MetLife to price $3 billion convertible equity units, $6.75 billion common stock offerings

By Rebecca Melvin

New York, March 1 - MetLife Inc. launched a $3 billion offering of mandatory convertible equity units late Tuesday and two concurrent common stock offerings for $6.75 billion, including one primary and one secondary offering , according to a market source.

Price talk wasn't immediately available on the offerings, which were seen pricing this week.

The mandatory offering is for 40 million common equity units, with Goldman Sachs & Co. and Citigroup Global Markets Inc. as the bookrunners.

MetLife's offering of 68.57 million shares of common stock is being handled by Goldman Sachs, Citigroup and Credit Suisse.

Alico Holdings LLC, a subsidiary of American International Group Inc., is also offering 78.24 million MetLife shares, for a total of 146.8 million shares.

Proceeds of the 68.57 million shares of stock will be used to buy back 6.86 million of MetLife's contingent convertible preferred shares owned by AIG.

MetLife will not receive any proceeds from the offering of 78.24 million common shares or the 40 million equity units.

The offerings are intended to provide for an orderly disposition of the MetLife securities owned by AIG. If all the securities offered are sold, AIG will have sold all of its holdings of MetLife securities received in MetLIfe's acquisition of Alico.

There will be conference calls on Wednesday and calls to investors. There will also be conference calls on Thursday if needed.

Based in New York, MetLife is a life insurance company.

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