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DES MOINES, Iowa - F&G Annuities & Life, Inc. (NYSE: FG), a leading insurance solutions provider, has priced a public offering of $500 million in senior notes with a 6.250% interest rate, maturing in 2034. The offering is slated to close on October 4, 2024, with the fulfillment of customary closing conditions.
The notes, which are to be guaranteed on an unsecured, unsubordinated basis by F&G's subsidiaries, will aid the company in repaying borrowings under its revolving credit facility. Additionally, the proceeds are intended to support general corporate purposes, including organic growth opportunities.
Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, and RBC Capital Markets, LLC are the joint book-running managers for the offering. Investors can access the registration statement and the prospectus supplement filed with the U.S. Securities and Exchange Commission on the SEC's website or directly from the managing firms.
This press release does not serve as an offer to sell or a solicitation of an offer to buy any securities. Such offers, solicitations, or sales will not be conducted in jurisdictions where they would be considered unlawful.
F&G focuses on aiding Americans in achieving their financial aspirations and is headquartered in Des Moines, Iowa. The company serves both retail annuity and life customers as well as institutional clients.
The information for this article is based on a press release statement. It should be noted that forward-looking statements contained in the press release involve risks and uncertainties, and actual events or results could differ materially from those anticipated.
In other recent news, FGL Holdings (NYSE:FG_old) reported a robust Q2, with adjusted net earnings of $139 million, equivalent to $1.10 per share, and record gross sales of $4.4 billion. The firm's strategic investments, such as an increased stake in Freedom Equity Group, are contributing to margin growth and positioning for sustained asset growth. FGL is on track to meet its target of 50% assets under management (AUM) growth by 2028.
Piper Sandler maintains a Neutral rating on FGL Holdings, following a recent investor meeting where the company's growth despite the changing rate environment was discussed. Barclays initiated coverage on FGL Holdings with an Equalweight rating, expressing a balanced view of potential growth prospects and risks, including the company's higher invested asset risk profile.
These developments reflect the company's ongoing strategic initiatives and market position. The company's decision to invest in owned distribution was highlighted as a forward-thinking move, and its partnership with Blackstone (NYSE:BX) was seen as beneficial. FGL Holdings continues to expand its capabilities, now including Retirement Income Liability (RILA) offerings and Pension Risk Transfer (PRT) capabilities. These recent developments provide a snapshot of FGL Holdings' current operations and future plans.
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 growth supports F&G's strategy to fund organic growth opportunities with the proceeds from the notes offering.
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 P/E ratio of 16.46 suggests a reasonable valuation relative to its earnings, which could be attractive to investors considering the new debt issuance.
Furthermore, F&G has shown a strong return over the last three months, with a price total return of 19.25% during that period. This positive momentum, coupled with a dividend yield of 1.88%, may appeal to investors looking for both growth and income potential.
For readers interested in a deeper analysis, InvestingPro offers 6 additional tips that could provide valuable insights into F&G's financial health and market position.
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