The insurance-based financial services company paid $3.4bn to the US Treasury to repurchase the preferred stock, plus a final dividend payment of about $21.7m. The Hartford funded the repurchase with proceeds from recent equity and debt offerings, as well as from available resources.
“We are pleased to complete our plan to return the US Treasury’s investment in The Hartford and appreciated the opportunity to participate in CPP and the support of the government and American taxpayers,” said Liam McGee, The Hartford’s chairman, president and chief executive officer. “With the capital raise completed and the investment repaid, we are well positioned from both a capital and balance sheet perspective.”
The US Treasury continues to hold warrants to purchase approximately 52 million shares of The Hartford’s common stock at an initial exercise price of $9.79 per share. The company does not intend to repurchase the warrants from the US Treasury.