Lincoln National Launches $500M Tender Offer for High-Cost Preferred Stock

summarizeSummary

Lincoln National announced a tender offer to repurchase up to $500 million of its high-cost preferred stock, aiming to cut future dividend payments and strengthen its capital structure.

check_boxKey Events · Financing and Capital Events · LNC

• Tender Offer Launched

  Lincoln National commenced concurrent offers to purchase up to $500 million aggregate liquidation preference of its Series C (9.25% fixed rate reset) and Series D (9.0%) depositary shares, with Series C having priority acceptance.

• Offer Pricing and Terms

  The Series C offer price is $1,055.00 per $1,000 liquidation preference, while the Series D offer price is $26.30 per $25.00 liquidation preference, plus accrued dividends. Both offers expire on September 8, 2026.

• Capital Management Rationale

  The principal purpose is to efficiently manage the capital structure and reduce future dividend payment obligations on high-cost preferred stock, funded with cash on hand.

• Director Participation

  Director Gary C. Kelly, who owns 15,006.55 Series D depositary shares, intends to tender all of his holdings in the offer.

auto_awesomeAnalysis · LNC · Finance

In a bid to trim future dividend obligations and optimize its balance sheet, Lincoln National is offering to buy back up to $500 million of its Series C and D preferred depositary shares, which carry steep fixed dividend rates of 9.25% and 9.0%, respectively. The tender, funded with cash on hand, prioritizes the more expensive Series C shares; if fully subscribed, no Series D shares will be purchased. While this represents a significant liability management exercise, the impact on common equity is limited because the preferred shares are already outstanding and the buyback is at a modest premium to recent trading levels.