One of three major insurers that took government bailout, Lincoln National Corp. (LNC) said that they are capable of repaying all the money. It was given $950 million as part of the rescue plan.
The insurer will be selling its stock and debt worth $1 billion for the same purpose. It also said that it is planning to buy back the preferred shares of the government, but is awaiting regulatory approvals.
This step, if successful, shall allow LNC to come out of the bailout program, ahead of its earlier plans. Post the bailout process, Chief Executive Dennis Glass had said that LNC will be out of the Troubled Asset Relief Program by the end of 2010.
Out of the $1 billion sale, $335 million will be common stocks while the rest $750 million will be in form of senior notes. Proceeds from other stocks and $250 million will be used by it for the purpose of buying back the stocks from the government.
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