MetLife Units Vend Notes - Analyst Blog

Recently, a couple of subsidiaries of MetLife Inc. (MET) sold off senior notes worth approximately $2 billion. According to the Reuters, on Wednesday, MetLife Global Funding I vended off its 5-year senior notes worth $850 million in the 144A private placement market. The quantum of the notes offering was increased from $800 million planned initially.

These notes carried an issue price of $99.949 with maturity on September 29, 2015. These fixed security notes are projected to have a spread of 120 basis points (bps) over the U.S. Treasuries, bearing a fixed interest rate of 2.50% and yield rate of 2.511%. Interest on the notes is payable semi-annually, in equal installments, commencing March 29, 2011. The settlement is dated September 29, 2010.

MetLife appointed Barclays plc (BAC), Credit Suisse Group (CS), Deutsche Bank AG (DB) and JPMorgan Chase & Co. (JPM) as the joint book-running managers for the sale.

Separately, on Tuesday, MetLife Institutional Funding II retired $1.35 billion of its notes in a two-part sale in the 144A private placement market. The first set of $1 billion notes carried an issue price of $100.00, to mature on September 20, 2011. These short-term notes bear a fixed interest rate and yield rate of 15 bps over the existing 3-month LIBOR rate. Interest on the notes is payable quarterly, in equal installments, commencing December 20, 2010. The settlement is dated September 27, 2010.

Additionally, the second set of $350 million notes carried an issue price of $100.00, to mature on March 27, 2012. These short-term notes bear a fixed interest rate and yield rate of 40 bps over the existing 3-month LIBOR rate. Interest on the notes is payable quarterly, in equal installments. The settlement is dated September 27, 2010.

MetLife appointed Deutsche Bank and UBS AG (UBS) as the joint book-running managers for the two-part sale of $1.35 billion notes.

All the variety of MetLife's notes discussed above carry a rating of “Aa3” and “AA-” from Moody's Investor Service of Moody's Corp. (MCO) and Standard & Poor's, respectively.

However, any details regarding the utilization of the net proceeds from the entire notes' sale remains undisclosed.
 
BANK OF AMER CP (BAC): Free Stock Analysis Report
 
CREDIT SUISSE (CS): Free Stock Analysis Report
 
DEUTSCHE BK AG (DB): Free Stock Analysis Report
 
JPMORGAN CHASE (JPM): Free Stock Analysis Report
 
MOODYS CORP (MCO): Free Stock Analysis Report
 
METLIFE INC (MET): Free Stock Analysis Report
 
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