Company to participate in US Treasury’s Capital Purchase Program, aims to use net proceeds for possible repurchase of outstanding debt
The Hartford Financial Services Group (HIG), an insurance-based financial services company, has started a discretionary equity issuance plan through which it will offer shares of its common stock from time to time for aggregate sales proceeds of up to $750 million.
HIG also stated that it will participate in the US Treasury’s Capital Purchase Program (CPP), subject to completion of documentation with the US Treasury.
Ramani Ayer, Chairman and CEO, Hartford, said: “With our strategic review complete, we are continuing to take actions to build shareholder value. In this continued, uncertain economic environment, our decisions to participate in CPP and to access the equity market represent important steps in enhancing our financial strength and implementing our long-term capital plan.”
Hartford aims to use net proceeds of sales under the program for general corporate purposes, including the possible repurchase of outstanding debt.