OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb” to the recently issued USD $500 million floating rate junior subordinated debentures due 2067 of The Hartford Financial Services Group, Inc. (The Hartford) (headquartered in Hartford, CT) [NYSE:HIG]. The outlook assigned to the Credit Rating is stable.
Proceeds from the offering will be utilized to retire existing junior subordinated notes of $500 million with a coupon rate of 8.125% on its June 2018 call date. Holders of the new junior subordinated notes will receive floating rate interest of 3-month Libor plus 212.5 basis points. The notes will mature on Feb. 12, 2067. Following issuance of the new notes, The Hartford’s financial leverage and coverage metrics will remain within guidelines for the company’s Long-Term Issuer Credit Ratings.
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