By Rebecca Melvin
New York, March 2 - MetLife Inc. priced $3.3 billion proceeds of three-year mandatory convertible equity units with a 5% coupon late Wednesday, a day ahead of schedule, and two concurrent common stock offerings for $6.35 billion, including one primary and one secondary offering, according to a syndicate source.
The mandatory convertible sale was made up of 40 million units a stated amount of $75.00 each for a total of $3 billion. The units priced at $82.88 for gross proceeds of $3.32 billion.
There was no greenshoe.
The units' threshold appreciation price is $44.275, which is 25% above the $35.42 stock reference price.
The units were sold by the Alico Holdings LLC subsidiary of American International Group, Inc.
In the concurrent stock offerings, Alico sold 146,809,712 shares and MetLife sold 68,570,000 shares, in each case at $43.25 each. Proceeds were $3.38 billion and $2.97 billion respectively.
Goldman Sachs & Co. and Citigroup Global Markets Inc. were bookrunners for the equity units while Goldman Sachs, Citigroup and Credit Suisse handled the stock sale.
The offerings by Alico are intended to provide for an orderly disposition of the MetLife securities owned by AIG. AIG is selling all of its holdings of MetLife securities received in MetLIfe's acquisition of Alico.
Based in New York, MetLife is a life insurance company.
| Issuer: | MetLife Inc.
|
| Issue: | Mandatory convertible equity units
|
| Amount: | $3.3 billion proceeds (40 million units), $3 billion face value
|
| Maturity: | Oct. 8, 2014
|
| Concurrent offering: | 146.8 million shares of common stock at $43.25 each
|
| Distribution rate: | 5%
|
| Price: | $82.88, par of $75
|
| Threshold appreciation price: | $44.275
|
| Minimum conversion ratio: | 1.6940
|
| Maximum conversion ratio: | 2.1174
|
| Bookrunners: | Goldman Sachs and Citigroup
|
| Pricing date: | March 2
|
| Settlement: | March 8
|
| Listing: | NYSE: MET
|
| Distribution: | Registered
|
| Stock reference price: | $35.42
|
| Market capitalization: | $45.9 billion
|
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