F&G, a provider of retail annuity and life insurance solutions, has secured preferred stock investment worth $250m from its parent company, Fidelity National Financial (FNF).
The infusion will help bolster the growth of F&G’s insurance company subsidiaries.
In November last year, F&G announced plans to secure investment from FNF, which owned a nearly 85% stake in F&G as of 30 September 2023.
To facilitate this investment, the board of directors of F&G constituted a special committee of independent board members to evaluate and negotiate the investment terms.
As per the deal, FNF will invest $250m in exchange for five million shares of 6.875% Series A Mandatory Convertible Preferred Stock of F&G.
If the shares are not converted earlier at the holder’s discretion, the outstanding share of mandatory convertible preferred stock will be converted into shares of F&G common stock on 15 January 2027.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The investment agreement was negotiated on market terms and pricing by the special committee, with Barclays acting as the independent financial advisor and Sullivan & Cromwell as the independent legal counsel.
In November last year, F&G Annuities & Life reported that its board of directors raised the share repurchase authorisation of the company by $25m to a total of $50m.
Based in Des Moines, Iowa, F&G was founded in 1959. It focuses on offering tailored life insurance and annuity solutions.
The offerings are delivered through a national network comprising financial experts.
F&G became a FNF subsidiary in 2020. Its products are said to have provided protection for approximately 900,000 individuals in the US.