Reinsurance Group of America, Incorporated (RGA) has announced the completion of a $700 million offering of 6.650% Fixed-Rate Reset Subordinated Debentures due 2055. These debentures, issued under an indenture agreement with The Bank of New York Mellon Trust Company, are unsecured and subordinated, ranking junior to the company’s senior indebtedness and effectively subordinated to all debts and liabilities of its subsidiaries.
The debentures will bear a fixed 6.650% interest rate until September 15, 2035, after which the rate will reset every five years based on the Five-Year Treasury Rate plus 2.392%. Interest payments will be made semi-annually. The debentures are callable at par during specified periods before reset dates and under certain conditions such as tax or regulatory capital events.
RGA intends to use the net proceeds of approximately $693 million for general corporate purposes, including obligations related to a previously announced reinsurance transaction with subsidiaries of Equitable Holdings, Inc.
The offering was conducted under RGA’s automatic shelf registration statement and was underwritten by BofA Securities, Goldman Sachs, Morgan Stanley, and RBC Capital Markets. The underwriting agreement includes customary representations and indemnifications.
The transaction aligns with RGA’s capital management strategy, enhancing its liquidity while maintaining financial flexibility.
Value Investor2025-03-04
