On Sep 10, 2009, Metropolitan Life Global Funding I, a unit of MetLife Inc (MET) announced the sale of fixed-rate funding agreement-backed notes in the 144a private placement market worth $1 billion. The size of the deal represents a 100% increase from the originally planned $500 million.

Bank of America Corporation (BAC), Credit Suisse Group AG (CS), and Deutsche Bank AG (DB) were the joint book-running managers for the sale.

The notes are non-callable and carry a coupon rate of 2.875% and will mature on Sep 17, 2012. The notes will pay coupons semi-annually with the first payment expected on Mar 17, 2010. The company will use the sale proceeds of the debentures for general corporate purposes.

Standard &Poor’s Ratings Services (S&P) assigned ‘AA-’ rating while Moody’s assigned ‘AA2′ rating to the notes.

MetLife’s second-quarter earnings came in much ahead of the Zacks Consensus Estimate, aided by strong top-line growth and rebounding markets. The company’s capital position remains one of the sturdiest in the industry as reconfirmed by the capital assessment process conducted by the Fed. However, results continued to be negatively impacted by investment losses, lower investment income and recent rating downgrades.

While we think MetLife should continue to benefit from its diversified business mix as well as its leading brand, higher losses in the investment portfolio will impact the results in the coming quarters.

We are maintaining our Neutral recommendation on the shares.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (AMMD) American Medical Systems Holdings Amends Notes ExchangeAmerican Medical Systems Holdings, Inc. (AMMD) amended its offer to exchange up to $250 million...
2. (USB) US Bancorp Issues Senior NotesOn Sept. 2, 2009, US Bancorp (USB) announced the sale of 3.5 year senior notes...
3. (JPM) California to Start Revenue Anticipation Notes SaleDuring the period of September 21-23, California plans to sell $10.5 billion of so-called revenue...
4. (DB) Deutsche Bank to Redeem Oil Exchange-Traded NotesDeutsche Bank AG (DB) yesterday announced that it will redeem all of its most bullish...
5. (DUK) Duke Energy Issues BondsDuke Energy Corp. (DUK) recently raised the size of its senior notes offering to $1...
6. Credit machine not yet fixedAlthough the rates at which banks lend to each other have eased considerably from their...

Search Posts by Tag: BAC | Bank of America Corporation | Credit Suisse Group | CS | DB | Deutsche Bank AG | MET | MetLife | Financial | Life Insurance

RSS Feeds by Tag: BAC | Bank of America Corporation | Credit Suisse Group | CS | DB | Deutsche Bank AG | MET | MetLife | Financial | Life Insurance |

Other Posts by: vitalstocks | RSS Feed for this author