Hartford to Pay Allianz $2.43 Billion to Buy Debt, Warrants
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Hartford Financial Services Group Inc., the insurer being pressured by investor John Paulson to break up, will pay about $2.43 billion to buy back debt and warrants issued to Allianz SE.
Chief Executive Officer Liam McGee plans to issue senior notes and junior subordinated debt as part of a strategy to improve financial flexibility, according to a statement today from Hartford, which is based in the Connecticut city of the same name. The U.S. company turned to Allianz, Germany’s largest insurer, for capital in 2008, agreeing to pay 10 percent on $1.75 billion of debt as capital markets froze.