Fidelity & Guaranty Life Expects to Raise Nearly $200 Million in IPO
December 13, 2013 by Fran Matso Lysiak
DES MOINES, Iowa – Fidelity & Guaranty Life, a unit of Harbinger Group Inc., has started an initial public offering of 9.75 million shares of common stock under a Form S-1 registration statement with the U.S. Securities and Exchange Commission. The IPO’s price is expected to be between $17 and $19 a share, and the company is now expected to raise nearly $200 million.
The registration statement relating to these securities was filed with the SEC but hasn’t yet taken effect, the company said in a statement.
New York-based Harbinger Group is a financial conglomerate. Harbinger Capital Partners, a private equity firm and hedge fund, owns a 39% stake in Harbinger Group.
Over the summer, Fidelity & Guaranty Life filed for an IPO of its common stock, with a proposed maximum total offering price at that time of $100 million. In a Form 8-K filed with the SEC, Harbinger Group said its subsidiary, Fidelity & Guaranty Life, filed a registration statement on Form S-1 relating to the proposed IPO of its common common stock. All of the shares were to be offered by Fidelity & Guaranty Life, and Harbinger Group isn’t a selling stockholder in the offering (Best’s News Service, Aug. 29, 2013).
The start date of the proposed sale to the public will be “as soon as practicable,” Fidelity & Guaranty Life wrote in the S-1 in August. On Aug. 26, Harbinger F&G LLC, a Delaware limited liability company, converted into a Delaware corporation under a statutory conversion and renamed itself Fidelity & Guaranty Life, the filing said (Best’s News Service, Aug. 29, 2013).
Fidelity & Guaranty Life expects to grant the underwriters a 30-day option to buy up to an additional 1. 46 million-plus shares of common stock, the company said in the Dec. 3 press release.
Credit Suisse, J.P. Morgan and Jefferies are serving as lead joint book-running managers and as representatives of the underwriters for the offering. Macquarie Capital and RBC Capital Markets are acting as book-running managers. Nomura, Sandler O’Neil Partners, Sterne Agee, Cantor Fitzgerald & Co. and Dowling & Partners Securities are acting as co-managers for the offering.
Fidelity & Guaranty Life Holdings Inc., through its insurance subsidiaries, is a manufacturer of individual life and annuity products and maintains a competitive position in fixed indexed annuities and a modest position in indexed universal life insurance, according to A.M. Best Co. (Best’s News Service, Nov. 6, 2013).
Key life/health subsidiaries of Fidelity & Guaranty Life Holdings Inc. currently have Best’s Financial Strength Ratings of B++ (Good).
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
