Yesterday, MetLife Inc.’s (MET) unit– MetLife Global Funding I sold 3-year floating-rate notes worth approximately C$325 million ($332 million), according to Reuters.
These floating-rate notes were priced at a par value and dated to mature on June 17, 2014. The non-callable notes are projected to have a coupon rate of 90 basis points over the existing three-month Canadian dealer offered rate.
Further, MetLife appointed the investment dealer arms of Canadian Imperial Bank of Commerce, Bank of Nova Scotia and Toronto-Dominion Bank as the joint book-running managers for the sale.
MetLife has been consistent in trading notes from time to time, depending on its operational uses. In March this year, MetLife Institutional Funding II sold 3-year floating-rate notes worth approximately $1.0 billion in the 144A private placement market.
Again in January 2011, MetLife Institutional Funding II had also vended 1.25-year notes worth approximately $500 million. During the same period, MetLife Global Funding I had also vended off senior notes worth approximately $1.5 billion. These notes generally have maturity duration of three to five years.
Besides, during September 2010, a couple of subsidiaries of MetLife announced the sale of senior notes worth approximately $2 billion. While MetLife Global Funding I vended off its 5-year senior notes worth $850 million; MetLife Institutional Funding II retired $1.35 billion of its notes in a two-part sale, in the 144A private placement market.
Further, during September 2009, the company sold fixed-rate funding-agreement backed notes worth $1 billion, the proceeds of which were used for general corporate purposes.
Although the details and usage of the note issue are not disclosed, we believe it will supplement the company’s funding for its expansion and growth plan, although additional debt raises concern about the company’s capital leverage.
The issuing of notes will further enhance MetLife’s international profile and improve its ability to access the international debt-capital markets and boost its operations.
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