Two statutory trusts issued $750 million of precapitalized trust securities in private placements, pursuant to purchase agreements involving Principal Financial Group Inc. and its subsidiary, Principal Financial Services Inc.
High Street Funding Trust I issued 400,000 precapitalized trust securities redeemable Feb. 15, 2028, for an aggregate purchase price of $400 million.
High Street Funding Trust II issued 350,000 precapitalized trust securities redeemable Feb. 15, 2048, for an aggregate purchase price of $350 million.
The trusts invested the proceeds from the sale in separate portfolios of principal and/or interest strips of U.S. treasury securities.
Principal Financial Group and Principal Financial Services also entered into separate put option agreements with the trusts.
Each agreement gives Principal Financial Group the right to require the applicable trust to purchase, on one or more occasions, from the company senior notes in an aggregate principal amount at any one time outstanding and held by such trust.
High Street Funding Trust I may be required to buy up to $400 million of the company's 4.111% senior notes due 2028, while High Street Funding Trust II may have to buy up to $350 million of the company's 4.682% senior notes due 2048.
