OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “a-” to the $500 million 3.4% senior unsecured notes, due Jan. 15, 2031, and the $300 million 4.375% senior unsecured notes, due June 15, 2050, issued by Lincoln National Corporation (LNC) (Fort Wayne, IN). The outlook assigned to these Credit Ratings (rating) is stable. LNC’s existing Long-Term Issuer Credit Rating and Long-Term IRs remain unchanged.
Proceeds from the notes will be used to pay the $500 million LIBOR plus 150 basis points term loan, due 2022, and the $300 million 4.85% notes, due 2021, senior note. Furthermore, the company holds $760 million at the holding company, which includes excess funds targeting to pay its $300 million 4.20% senior unsecured notes, due 2022. This plan gives extra financial flexibility in the current COVID-19 pandemic environment, and removes pressure in the medium term to address maturities. LNC’s financial leverage and coverage measures decreased slightly but remain within AM Best’s guidelines.
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