The insurer plans to use proceeds for corporate purposes and potential preferred share buybacks after a recent sell-off.
Lincoln National Corporation issued $500 million in debt through an underwriting agreement with major investment banks. The move follows a 5% single-day drop in its shares on June 24, extending year-to-date losses to 11.7% despite a 16.6% gain over the past year.
Earlier in 2024, UBS raised its price target on LNC to $39 from $37, maintaining a Neutral rating, while Morgan Stanley cut its target to $40 from $43 but kept an Overweight stance. Both adjustments followed the company’s first-quarter earnings report, which Morgan Stanley noted as part of a strong insurance sector performance.
The debt issuance is intended for general corporate purposes, including potential buybacks of preferred shares. The announcement contributed to the recent share price decline.