The plan was announced on June 12, coinciding with the announcement that the insurer would receive approximately $3.4 billion from the U.S. Treasury's Capital Purchase Program (CPP). At the time, The Hartford said the stock sale would net $750 million. However, the company announced today the actual total exceeded $900 million, after selling 56,108,703 shares of common stock an average price of $16.03.
"We are pleased to have successfully completed the company's discretionary equity issuance plan shortly after announcing our second quarter results," Ramani Ayer, chairman and CEO of The Hartford said in a statement. "We saw strong demand from a broad range of investors, enabling us to increase the offering by $150 million to $900 million. This is an important indication that investors believe The Hartford has the strategy for building shareholder value and that we are on the path toward strengthening our long term financial position."
The Hartford intends to use the net proceeds from the program for general corporate purposes, including the possible repurchase of outstanding debt.
