Lincoln Financial Group announced it has bought back at 2.9 million of the 13 million common stock warrants that it issued to the U.S. Treasury Department in 2009 in connection with the Treasury’s investment in the company under the Capital Repurchase Program.
The company paid $16.60 per warrant at an auction held by the Treasury. The warrants have an exercise price of $10.92 and expire on July 10, 2019. The transaction is expected to close today, September 22, 2010.
This “reflects our confidence in the strength of our balance sheet and the long-term value of the franchise,” said Dennis R. Glass, Lincoln’s president and CEO. “This investment was also an opportunity to reduce future dilution to our shareholders at an attractive price.”
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $140 billion as of June 30, 2010.
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