Prudential Financial declines Treasury funds
Prudential Financial Inc. today said that it won’t participate in the Department of the Treasury’s Capital Purchase Program.
Prudential Financial Inc. today said that it won’t participate in the Department of the Treasury’s Capital Purchase Program.
The Newark, N.J.-based financial services firm said that following a review, its management declined the Treasury Department’s offer to receive aid through a component of the Troubled Asset Relief Program.
Prudential also announced a $1.25 billion common stock offering to the public and said it plans to use the net proceeds for “general corporate purposes.” Those may include capital injections into its subsidiaries, including its insurance division, as well as the repayment of debt and other strategic initiatives.
Last month, the Treasury Department opened TARP to a handful of life carriers, including Allstate Corp. of Northbrook, Ill., Ameriprise Financial Inc. of Minneapolis, Hartford (Conn.) Financial Services Group Inc., Lincoln National Corp. of Radnor, Pa., and Principal Financial Group Inc. of Des Moines, Iowa.
Allstate and Ameriprise declined the TARP funds within days of being offered the money.
Meanwhile, other prospective TARP participants found other ways to raise money. Principal Financial Group last month announced a proposed public offering of 42.3 million shares of common stock and a $750 million senior note offering. The funds will be used to refinance some $441 million in notes coming due Aug. 15 and to inject cash into the company’s life insurance and other subsidiaries.
Learn more about reprints and licensing for this article.
