Lincoln Financial Group has acquired 2.9 million warrants to purchase its common stock in an auction conducted on behalf of the US Department of the Treasury.
Lincoln Financial had issued warrants to the Treasury in 2009 in connection with the Treasury’s investment in the company under capital purchase program.
In addition, the company paid $16.60 per warrant, and the 2.9 million warrants acquired represent 22.3% of the 13 million outstanding warrants.
The warrants have an exercise price of $10.92 and will expire on 10 July 2019, said the company.
Lincoln Financial president and CEO Dennis Glass said that the company’s participation in Treasury’s successful auction of the warrants reflects its confidence in the strength of its balance sheet and long-term value of the franchise.
The transaction is expected to close on 22 September 2010.