Fidelity National Financial (NYSE:), Inc., a leading provider of title insurance, has announced through a recent SEC filing that its majority-owned subsidiary, F&G Annuities & Life, Inc., has issued $375 million in junior subordinated notes. The notes, which have a 7.300% interest rate, are set to mature on January 15, 2065.
The offering, which was completed today, involved the public sale of the notes under F&G’s previously filed registration statement. The proceeds from the sale are intended for general corporate purposes, which may include repaying, redeeming, or repurchasing existing debt.
F&G entered into an underwriting agreement with several notable financial institutions, including Wells Fargo (NYSE:) Securities, LLC and Morgan Stanley & Co (NYSE:). LLC, on January 6, 2025. The notes were issued pursuant to an indenture agreement with Citibank, N.A. serving as the trustee.
The notes will pay interest quarterly with the first payment due on April 15, 2025. F&G reserves the right to defer interest payments for up to five years, although it cannot extend beyond the maturity date or any prior redemption of the notes. Starting January 15, 2030, F&G may choose to redeem the notes, in whole or in part, at 100% of their principal value plus accrued interest.
The indenture also provides for redemption options under specific circumstances, such as tax events, regulatory capital events, or rating agency events, with varying redemption prices.
This financial move aligns with Fidelity National Financial’s strategic management of its capital structure and reflects its ongoing efforts to optimize its balance sheet.
The details of the indenture and the notes are outlined in the exhibits attached to the SEC filing, which provides the legal framework and terms of the notes. This SEC filing offers investors a transparent view of the transaction and its terms.
This news is based on information from a press release statement.
In other recent news, Fidelity National Financial Inc. has been the subject of several analyst upgrades. Deutsche Bank (ETR:) raised its rating for the company from Hold to Buy and increased the price target to $77.00, citing the company’s strong financial performance and revenue growth. Truist Securities also expressed confidence in Fidelity National, increasing the stock’s price target from $64.00 to $70.00, while maintaining a Buy rating. Stephens followed suit, raising the price target on Fidelity National shares to $68 from $63, maintaining an Overweight rating.
These upgrades come on the back of Fidelity National’s robust Q3 2024 earnings. The company’s title business registered pre-tax earnings of $323 million, total revenue reached $3.6 billion, and net earnings stood at $266 million. Fidelity National’s subsidiary, F&G, also reported record assets under management and significant sales growth.
In addition to these positive financial results, Fidelity National is planning a strategic spin-off of its interest in F&G in 2025, a move analysts believe could serve as a significant catalyst for the stock’s performance. These recent developments reflect Fidelity National’s operational strength and ability to manage market headwinds effectively. The company maintains a strong balance sheet, with $822 million in cash and $4.2 billion in consolidated debt, and a balanced capital allocation strategy.
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