Lincoln Financial Group To Pay $ 500 million debt due April

 

Wednesday, Apr 01,2009, 2:44:09 PM   Click:

Copyright: PR Newswire
Source: PR Newswire
Wordcount: 1673

PHILADELPHIA, March 31 / PRNewswire-FirstCall / - Lincoln Financial Group (NYSE: LNC) will pay $ 500 million debt maturity in full and on time, on 6 April 2009. The refund will be made to the internal cash resources currently held in the holding company, rather than any external financing from private or government sources. The company also has $ 375 million of commercial paper outstanding under the Commercial Paper Funding Facility (CPFF ") authorized by the Federal Reserve Board and scheduled to mature in May this year, he must repay within available cash and the issuance of new commercial paper, without government guarantees. While Lincoln hopes to be able to continue issuing commercial paper, the company has the internal financial resources and a $ 1 billion credit market must limit his ability to do so.

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In order to increase its funding opportunities, Lincoln had already submitted applications to two government programs, the Federal Deposit Insurance Corporation (FDIC) Temporary Guarantee Program liquidity (TLGP ") and the purchase of fixed assets under the U.S. Treasury's Troubled Asset Relief Program (TARP). However, the company's capital and liquidity do not assume the receipt of any government funding.

Lincoln's TLGP the implementation of the program was made on the basis of an exception because its pending application to become an economy and society of the loan portfolio has not been approved at the time TLGP was launched last year. Accordingly, the company has recognized, when it applies for TLGP that it might not be eligible to participate in the TLGP program.

On 27 March, 2009, based on a recent discussion with the FDIC in its interpretation of TLGP eligibility Lincoln has voluntarily withdrawn its application for the program. Neither eligibility nor Lincoln had decided to withdraw his request was related in any way to society or projected liquidity or capital needs. If the conditions are TLGP revised to extend eligibility for the program, the company to consider submitting another application.

Lincoln has not withdrawn its application for participation in the TARP program and assess this option if it becomes eligible for TARP funds.

Dennis Glass, Lincoln the President and CEO, said: "Lincoln has recently taken a number of measures to strengthen its capital and liquidity positions in these difficult markets, including $ 250 million cost reduction program, $ 240 million of reinsurance transactions and the virtual elimination of the common stock dividend, and the Council is ready to take additional measures to protect the enterprise. We have more options and reinsurance, and securitization are also very fortunate to have a number of valuable assets that could be monetized to raise additional capital if needed. This flexibility, combined with Lincoln's strong core franchise, gives us confidence in our ability to successfully navigate a difficult environment. "

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. With headquarters in the Philadelphia area, the companies of Lincoln Financial Group had assets under management of $ 178 billion at December 31, 2008. Through its affiliated companies, Lincoln Financial Group offers: annuities, life, group life and disability insurance, 401 (k) and 403 (b) savings plans, mutual funds, managed accounts, institutional investment and financial planning and advisory services. Affiliates also: Delaware Investments, the marketing management in the name of Delaware Holdings, Inc. and its subsidiaries, and Lincoln UK. For more information, including a copy of our most recent SEC reports of our balance sheet, please visit www.LincolnFinancial.com.


Forward-looking statements - Language Warning

Certain statements made in this release and other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ( "PSLRA"). A forward-looking statement is a statement which is not a historical fact and, without limitation, any statement that includes May predict, forecast, indicate or imply future results, performance or achievements, and May contain words such as " believe, "" anticipate, "" expect, "" estimate, "project", "will", "should" and other words or phrases with meaning in the context of a discussion of future operating or financial performance. These include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results and the outcome of contingencies such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements involve risks and uncertainties that May, actual results could differ materially from the results contained in the forward-looking statements. May Risks and uncertainties that actual results to differ, some of which are described in the forward-looking statements include, among others:

- Continued deterioration in general economic and business conditions, both domestic and foreign, in May that affect exchange rates, premium levels, claims, the level of pension benefits and costs of financing and investment Results - Continuing the economic downturn of the credit market and liquidity could lead us to make further investments and impairment of certain intangible assets, including goodwill and a provision for impairment of deferred tax assets against, May that reduce future earnings and / or affect our financial position and its ability to raise capital or refinance existing debt as it matures - Uncertainty about the impact of the U.S. Treasury's Troubled Asset Relief Program on the economy and the ability of Lincoln to participate in the program, - laws, regulations or tax, both domestic and foreign, that affect the cost or the demand for products from Lincoln, the required amount of reserves and / or surplus, or otherwise adversely affect our ability to do business, including changes to the law of reservations and / or risk-based capital requirements related to secondary guarantees under life insurance Universal and variable annuity products such as Actuarial Guideline VACARVM, restrictions on revenue sharing and 12b-1 payments and the potential for federal tax reform of the United States - The initiation of legal proceedings or regulatory against Lincoln or its subsidiaries and the outcome of any legal or regulatory proceedings, such as: (a) adverse actions related to present or past practices in companies where Lincoln and its subsidiaries, competition, (b ) adverse decisions in significant actions including, but not limited to actions by the federal and state authorities and extra-contractual and class action cases, (c) new decisions that result in changes in the law, and (d) unexpected trial court decisions - changes in interest rates causing a reduction of investment income, the margins of Lincoln's fixed annuity and life insurance Lincoln businesses and demand for products, - A decline in stock markets causing a reduction in the sales of Lincoln, a reduction of asset-based fees that Lincoln charges on various investment products and insurance, accelerated amortization of deferred acquisition costs, value of the acquiree, inducements and deferred front-end loads and an increase in liabilities related to guaranteed benefit features of Lincoln variable annuity products - Ineffectiveness of Lincoln's various hedging strategies used to offset the impact of changes in the value of liabilities due to changes in the level and volatility of equity markets and interest rates - A deviation in actual experience in Regarding the future persistency, mortality, morbidity, interest rates or market returns of equity Lincoln's assumptions used in pricing its products in the establishment of insurance policies reserves and amortization of intangible assets in May result in an increase in reserves and a decrease in net income, including as a result of the foreign origin of life insurance, - Changes in GAAP that in May unanticipated changes to Lincoln's net income - Lowering of one or more of Lincoln debt rating issued by nationally recognized statistical rating organizations and the negative impact of such measures in May on Lincoln's ability to raise capital and on its liquidity and financial position; - Lowering of one or more of the insurer financial strength ratings of Lincoln's insurance subsidiaries and the negative impact such measures have written in May on the premium conservation policy, the profitability of its insurance subsidiaries and liquidity - Provision, accounting, fraud or corporate governance issues in May that affect the value of certain investments in the portfolios Lincoln companies requiring that Lincoln realize losses on such investments; - The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Lincoln's ability to integrate acquisitions and to obtain results and synergies from acquisitions; - The adequacy of reinsurance and recovery that has acquired Lincoln - The acts of terrorism, war or other man-made and natural disasters that Lincoln May affect business and the cost and availability of reinsurance, - the conditions of competition, including pricing pressures, new product offerings and the emergence of new competitors, that in May affect the level of premiums and charges that Lincoln can charge for its products - The unknown impact on Lincoln's business resulting from changes in the demographics of the clientele of Lincoln, as the aging baby-boomers move from the accumulation of assets to the asset distribution stage of life, and - the loss of key management, portfolio managers in the segment of the investment management, financial planners or wholesalers.


The risks included here are not exhaustive. Lincoln's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other filings with the SEC include additional factors that could impact on the Lincoln business and financial results. Moreover, Lincoln operates in a rapidly changing and competitive environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors.


In addition, it is not possible to assess the impact of all risk factors on Lincoln's business or the extent to which any factor or combination of factors, in May could cause actual results to differ materially from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of release.

SOURCE Lincoln Financial Group

CONTACT: Jim Sjoreen, Investor Relations, +1-484-583-1420, Investorrelations@LFG.com or Laurel O'Brien, Media Relations, +1-484-583-1735, mediarelations@LFG.com, the both Lincoln Financial Group