MetLife issues $1 billion in subordinated debentures

Published 13/03/2025, 21:44
MetLife issues $1 billion in subordinated debentures

NEW YORK – MetLife, Inc., a $53 billion market cap insurance giant with annual revenues of $71 billion, has issued $1 billion in subordinated debentures due 2055, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. The 6.350% Fixed-to-Fixed Reset Rate Subordinated Debentures were issued on Thursday, March 13, 2025, under an existing shelf registration statement. According to InvestingPro data, MetLife maintains strong financial health with liquid assets exceeding short-term obligations.

The debentures were sold through an underwriting agreement and pricing agreement with several underwriters, including BNP Paribas (OTC:BNPQY) Securities Corp., BofA Securities, Inc., and others. The transaction was managed by The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., as trustee.

This issuance marks a change in MetLife’s financial structure as the company has now designated these new debentures as "covered debt" under its Replacement Capital Covenants. Consequently, the company’s previously covered 5.70% Senior Notes due 2035 are no longer classified as such. Additionally, the holders of the new debentures have consented to the termination of the Replacement Capital Covenants, originally associated with other financial instruments like the Junior Subordinated Debentures due 2067, 2068, and 2069.

MetLife’s move to issue these debentures aligns with its financial strategy and obligations under various financial agreements. The legal validity of the debentures and related U.S. Federal income tax matters were confirmed by opinion letters from Willkie Farr & Gallagher LLP, which are attached to the filing.

The debentures were offered pursuant to a prospectus supplement filed on March 11, 2025, and the shelf registration statement filed on November 17, 2022. This financial move by MetLife reflects the company’s ongoing capital management efforts and its commitment to meet its long-term obligations.

MetLife, headquartered at 200 Park Avenue in New York, is a leading provider of life insurance and other financial services. This information is based on a press release statement.

In other recent news, MetLife Inc (NYSE:MET). reported mixed fourth-quarter financial results, with earnings per share matching analyst estimates at $2.09. The company announced a net income of $1.2 billion, a significant increase from the previous year’s $574 million, while adjusted earnings rose by 7% to $1.5 billion. Despite these gains, total revenues were impacted by losses in net investment income and derivative losses, largely due to rising long-term interest rates and currency fluctuations. MetLife’s Asia segment showed a 50% increase in adjusted earnings, but weaker performances in other segments tempered overall results. Analysts from firms like TD Cowen and Jefferies maintained positive ratings, noting potential growth and resilience, while Morgan Stanley (NYSE:MS) emphasized the importance of MetLife’s execution on its 2025 outlook.

Additionally, MetLife finalized a private placement transaction, securing $1.25 billion through Pre-Capitalized Trust Securities, providing the company with long-term financial flexibility. In executive news, Toby Srihiran Brown was appointed as interim Chief Accounting Officer, following Tamara L. Schock’s resignation, and Christian Mumenthaler, former Swiss Re (OTC:SSREY) CEO, joined the board of directors. These developments reflect MetLife’s strategic maneuvers and leadership adjustments aimed at enhancing governance and financial strategies.

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