The insurer priced $500 million in 30-year subordinated notes to refinance higher-cost debt and optimize capital structure.
Lincoln National Corporation issued $500 million in subordinated notes maturing July 15, 2056, with a fixed 6.800% interest rate until 2036. The notes, sold at a 1% discount to underwriters, will reset every five years based on the 5-year US Treasury yield plus 2.400% thereafter. Proceeds may be used to redeem higher-cost preferred stock, aiming to reduce long-term financing costs.
The offering was led by a syndicate including Wells Fargo Securities, BofA Securities, and Goldman Sachs, and closed on June 29, 2026. Interest payments begin January 15, 2027. The notes rank below senior debt and are unsecured, reflecting a strategic move to adjust capital structure amid favorable market conditions.
Jefferies recently reiterated a Buy rating on LNC with a $56 price target, matching the highest estimate among 16 analysts covering the stock. The insurer’s focus on optimizing debt costs aligns with broader efforts to enhance financial flexibility.