F&G Annuities & Life issues $500 million in Senior Notes

F&G Annuities & Life, Inc. (NYSE:FG) has successfully completed a public offering of $500 million in senior notes, the company disclosed in a recent SEC filing. The 6.250% Senior Notes, due in 2034, were issued on October 4, 2024, under an underwriting agreement with major financial institutions including Wells Fargo Securities and J.P. Morgan Securities.

The Des Moines-based life insurance company announced its intention to use the net proceeds from the offering to repay existing borrowings under its revolving credit facility and for general corporate purposes, which may include supporting organic growth opportunities.

The newly issued notes are guaranteed by F&G's subsidiaries that also back the company's obligations under its existing credit agreement. These notes are unsecured and unsubordinated, maturing on October 4, 2034, with interest payable semi-annually.

F&G has reserved the right to redeem the notes at any time prior to July 4, 2034, at a redemption price determined by a specified formula or at 100% of the principal amount, plus accrued interest, if redeemed on or after the designated Par Call Date.

In other recent news, Fidelity National Financial (NYSE:FNF) has acquired First Nationwide Title Agency's commercial operations, a move that aims to enhance its commercial real estate services across the United States. This acquisition brings First Nationwide's experienced leadership team, including President and CEO Steven Napolitano, into the Fidelity National Financial fold.

In parallel developments, F&G Annuities & Life has priced a public offering of $500 million in senior notes. The firm also reported robust Q2 earnings, with adjusted net earnings of $139 million and record gross sales of $4.4 billion. Analyst firms Piper Sandler and Barclays have maintained Neutral and Equalweight ratings on F&G, respectively.

F&G's strategic investments, such as an increased stake in Freedom Equity Group, are contributing to margin growth and positioning the firm for sustained asset growth. The firm aims to achieve a 50% growth in assets under management by 2028.

InvestingPro Insights

F&G Annuities & Life's recent $500 million senior notes offering aligns with its strong financial performance and growth trajectory. According to InvestingPro data, the company has demonstrated impressive revenue growth of 44.53% over the last twelve months as of Q2 2024, reaching $5,235 million. This robust top-line expansion supports F&G's ability to manage new debt issuances effectively.

InvestingPro Tips highlight that F&G has been profitable over the last twelve months and is expected to maintain profitability this year. The company's price-to-earnings ratio of 16.46 suggests a reasonable valuation relative to its earnings, which could be attractive to investors considering the new debt offering.

Moreover, F&G's dividend yield of 1.98% and a 5% dividend growth rate over the last twelve months indicate a commitment to shareholder returns, potentially offsetting concerns about increased debt levels. The company's strong return over the last year, another InvestingPro Tip, further underscores its financial health and ability to leverage new capital for growth opportunities.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in assessing F&G's financial position and future prospects in light of this new debt issuance.

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