The Hartford Announces Pricing of Capital Offerings

The Hartford Financial Services Group Inc. announced that it has priced its three previously announced capital offerings for gross proceeds of approximately $1.95 billion. About $1.1 billion of the funds were raised from 24.2 million shares of common stock priced at $45.50 per share. In addition, $600 million was raised from 12 million equity units, each comprised of a common stock purchase contract and an interest in a debt security, with a stated amount of $50 per equity unit. Approximately $250 million was raised from three-year debt securities.

These offerings were taken from an existing shelf registration. The Hartford intends to contribute approximately $1.5 billion of the net proceeds from these offerings to the capital of its property-casualty operations and $150 million to the capital of its life operations. The company intends to use the balance of the net proceeds for general corporate purposes, which may include contributions to its qualified pension plan and additional contributions to its subsidiaries.

The Hartford granted the underwriters of the common stock offering an over-allotment option of up to approximately 3.6 million additional shares. The company granted the underwriters of the equity units offering an over- allotment option of up to 1.8 million additional equity units.