Lincoln National Corp. started a cash tender offer for certain of its senior notes.
The company can buy up to an aggregate purchase price of $150 million across two series of notes: its 6.15% senior notes due 2036, and its 4.85% senior notes due 2021. In the case of the 4.85% senior notes due 2021, the company can purchase up to $50 million.
The purpose of the offer is to decrease Lincoln National's aggregate interest expense. The net proceeds from a senior debt offering that started Aug. 12, along with cash on hand, will be used to fund the cash tender offer.
The offer will expire at 11:59 p.m. ET on Sept. 9, unless extended or earlier terminated.
All 6.15% notes validly tendered on or prior to the early tender deadline, or after the early tender deadline but at or before the expiration date, will be accepted before any validly tendered 4.85% notes are accepted. The consideration paid for notes will be identified in the manner described in an offer to purchase dated Aug. 12 by reference to a fixed spread, plus the yield to maturity of the specified applicable U.S. Treasury bond.
Wells Fargo Securities LLC, BNP Paribas Securities Corp. and J.P. Morgan Securities LLC are serving as the joint lead dealer managers for the offer. The information agent and tender agent is Global Bondholder Services Corp.