Equitable Holdings Announces Early Results and Upsizing of Cash Tender Offer of Its Debt Securities
Equitable Holdings, a leading financial services company, announced the early results of its cash tender offer to purchase outstanding debt securities. The maximum aggregate purchase price has been increased from $500 million to $569.289 million. Notably, $1.076 billion of notes were validly tendered by the early deadline, exceeding the new purchase limit. The company will accept up to the revised maximum amount based on acceptance priority levels, with specific figures for each series of notes. Accepted tenders will receive early tender premiums and accrued interest until the early settlement date, expected on June 20, 2024. The tendered notes will be retired and canceled upon purchase.
- Equitable Holdings increased the maximum aggregate purchase price from $500 million to $569.289 million.
- The tender offer received $1.076 billion in valid tenders, indicating strong investor participation.
- Accepted tenders will receive an early tender premium of $30 per $1,000 principal amount.
- Accrued interest will be paid on accepted tenders up to the early settlement date.
- The total amount validly tendered exceeded the new purchase limit, meaning not all tenders will be accepted, potentially leaving some investors unsatisfied.
- The proration factor for the 4.572% Senior Notes due 2029 is 74.3%, indicating a reduction in acceptance.
Insights
Equitable Holdings' announcement about the early results and upsizing of its cash tender offer for debt securities presents several notable insights for retail investors. Firstly, the increase in the Maximum Aggregate Purchase Price from
The tender offer received
However, potential drawbacks include the proration factor for the 4.572% Senior Notes due 2029, which is expected to be
In the short term, this move could boost investor sentiment and stock performance due to improved liquidity and reduced debt liabilities. Long-term effects will depend on the company’s ability to sustainably manage its debt and maintain operational efficiency.
Overall, retail investors should view this tender offer as a positive step towards enhancing the company's financial health, although it's important to keep an eye on broader market dynamics and Equitable's future financial strategies.
The legal implications of Equitable Holdings' tender offer are minimal but worth noting. The definitive aspect of the increased Maximum Aggregate Purchase Price and the clear terms set forth in the Offer to Purchase underline the company's commitment to transparency and compliance with regulatory requirements. The company has ensured that bondholders are well-informed about their rights and the terms of acceptance, which is important for maintaining trust and regulatory standing.
Moreover, the fact that the withdrawal deadline has passed except in limited circumstances where additional withdrawal rights are required by law, showcases a well-managed process. This prevents last-minute legal disputes and ensures a smooth transaction.
For retail investors, understanding that this process adheres to stringent legal standards is reassuring. It indicates that the company is taking all necessary steps to comply with securities laws and protect the rights of its investors. This meticulous attention to legal detail supports Equitable Holdings' reputation and could positively influence investor confidence over the long term.
Except as described in this press release, all other terms and conditions of the Tender Offer remain unchanged and are described in the Offer to Purchase.
According to the information provided by Global Bondholder Services Corporation,
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As reported by Global Bondholder Services Corporation the Tender and Information Agent for the Tender Offer. |
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(2) |
The expected proration factor has been rounded to the nearest tenth of a percentage point for presentation purposes. |
Because the total aggregate principal amount of the Notes validly tendered prior to the Early Tender Deadline exceeds
Holders of Notes validly tendered and not validly withdrawn before the Early Tender Deadline and accepted for purchase will be eligible to receive the applicable Total Tender Offer Consideration, which includes an Early Tender Premium of
The Total Tender Offer Consideration will be calculated by the Lead Dealer Manager (identified below) for the Tender Offer at 10:00 a.m.,
All payments for Notes purchased in connection with the Early Tender Deadline will also include accrued and unpaid interest on the principal amount of Notes tendered and accepted for purchase from the last interest payment date applicable to the relevant Series of Notes up to, but not including, the early settlement date, which is currently expected to be June 20, 2024 (the “Early Settlement Date”). In accordance with the terms of the Tender Offer, the withdrawal deadline was 5:00 p.m.,
Notes that have been validly tendered and not validly withdrawn before the Early Tender Deadline and are accepted in the Tender Offer will be purchased, retired and cancelled by the Company on the Early Settlement Date.
TD Securities (
This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The Tender Offer is made only by the Offer to Purchase. There is no separate letter of transmittal in connection with the Offer to Purchase. None of the Company, the Company’s Board of Directors, the Lead Dealer Manager, the Dealer Managers, the Tender Agent and Information Agent or the trustees with respect to any Notes is making any recommendation as to whether holders should tender any Notes in response to the Tender Offer, and neither the Company nor any such other person has authorized any person to make any such recommendation. Holders must make their own decision as to whether to tender any of their Notes, and, if so, the principal amount of Notes to tender.
About Equitable Holdings
Equitable Holdings, Inc. (NYSE: EQH) is a leading financial services holding company comprised of complementary and well-established businesses, Equitable, AllianceBernstein and Equitable Advisors. Equitable Holdings has
Reference to the 1859 founding applies specifically and exclusively to Equitable Financial Life Insurance Company (NY, NY).
Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Equitable Holdings, Inc. (“Holdings”) and its consolidated subsidiaries. These forward-looking statements include, but are not limited to, statements regarding projections, estimates, forecasts and other financial and performance metrics and projections of market expectations. “We,” “us” and “our” refer to Holdings and its consolidated subsidiaries, unless the context refers only to Holdings as a corporate entity. There can be no assurance that future developments affecting Holdings will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of geopolitical conflicts and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital; (ii) operational factors, including reliance on the payment of dividends to Holdings by its subsidiaries, protection of confidential customer information or proprietary business information, operational failures by us or our service providers, potential strategic transactions, changes in accounting standards, and catastrophic events, such as the outbreak of pandemic diseases including COVID-19; (iii) credit, counterparties and investments, including counterparty default on derivative contracts, failure of financial institutions, defaults by third parties and affiliates and economic downturns, defaults and other events adversely affecting our investments; (iv) our reinsurance and hedging programs; (v) our products, structure and product distribution, including variable annuity guaranteed benefits features within certain of our products, variations in statutory capital requirements, financial strength and claims-paying ratings, state insurance laws limiting the ability of our insurance subsidiaries to pay dividends and key product distribution relationships; (vi) estimates, assumptions and valuations, including risk management policies and procedures, potential inadequacy of reserves and experience differing from pricing expectations, amortization of deferred acquisition costs and financial models; (vii) our Investment Management and Research segment, including fluctuations in assets under management and the industry-wide shift from actively-managed investment services to passive services; (viii) recruitment and retention of key employees and experienced and productive financial professionals; (ix) subjectivity of the determination of the amount of allowances and impairments taken on our investments; (x) legal and regulatory risks, including federal and state legislation affecting financial institutions, insurance regulation and tax reform; (xi) risks related to our common stock and (xii) general risks, including strong industry competition, information systems failing or being compromised and protecting our intellectual property.
Forward-looking statements, including any financial guidance, should be read in conjunction with the other cautionary statements, risks, uncertainties and other factors identified in Holdings’ filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240616484193/en/
Investor Relations
Erik Bass
(212) 314-2476
IR@equitable.com
Media Relations
Sophia Kim
(212) 314-2010
mediarelations@equitable.com
Source: Equitable Holdings, Inc.
FAQ
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