F&G Annuities & Life secures $250m most well-liked inventory funding

F&G, a supplier of retail annuity and life insurance coverage options, has secured most well-liked inventory funding value $250m from its guardian firm, Constancy Nationwide Monetary (FNF).

The infusion will assist bolster the expansion of F&G’s insurance coverage firm subsidiaries.

In November final 12 months, F&G introduced plans to safe funding from FNF, which owned an almost 85% stake in F&G as of 30 September 2023.

To facilitate this funding, the board of administrators of F&G constituted a particular committee of impartial board members to guage and negotiate the funding phrases.

As per the deal, FNF will make investments $250m in alternate for 5 million shares of 6.875% Collection A Necessary Convertible Most popular Inventory of F&G.

If the shares are usually not transformed earlier on the holder’s discretion, the excellent share of obligatory convertible most well-liked inventory can be transformed into shares of F&G frequent inventory on 15 January 2027.

The funding settlement was negotiated on market phrases and pricing by the particular committee, with Barclays appearing because the impartial monetary advisor and Sullivan & Cromwell because the impartial authorized counsel.

In November final 12 months, F&G Annuities & Life reported that its board of administrators raised the share repurchase authorisation of the corporate by $25m to a complete of $50m. 

Primarily based in Des Moines, Iowa, F&G was based in 1959. It focuses on providing tailor-made life insurance coverage and annuity options.

The choices are delivered by way of a nationwide community comprising monetary consultants.

F&G turned a FNF subsidiary in 2020. Its merchandise are stated to have supplied safety for about 900,000 people within the US.

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