The Hartford has closed of an offering of $600 million of 7.875 percent fixed-to-floating rate junior subordinated debentures due in 2042 and an offering of $1.55 billion of senior notes.

The senior note offering consists of $325 million of four percent notes due in 2017, $800 million of 5.125 percent notes due in 2022 and $425 million of 6.625 percent notes due in 2042.

The company plans to use the proceeds of the offerings to repurchase from Allianz SE (together with certain of its affiliates, "Allianz"), for aggregate consideration of approximately $2.125 billion, all outstanding 10 percent fixed-to-floating rate junior subordinated debentures due 2068, with an aggregate principal amount of $1.75 billion. This repurchase transaction will be conducted pursuant to the terms of a purchase agreement between the company and Allianz dated on March 30.

"We are very pleased with the level of interest from existing and new investors in these offerings, which were substantially oversubscribed," said Christopher Swift, executive vice president of The Hartford, in a prepared statement. "The offerings facilitate the repurchase of higher-coupon debt from Allianz, which will reduce our interest expense, improve our financial flexibility and give us a more optimal capital structure."

The repurchases of the debt along with the previously announced purchase of all outstanding warrants entitling Alllianz to purchase 69,351,806 shares of the company’s common stock are expected to close on April 17.

The repurchase of the 10 percent fixed-to-floating rate junior subordinated debentures due 2068 is contingent on a successful consent solicitation to terminate a related replacement capital covenant entered into for the benefit of the holders of the company’s outstanding 6.1 percent senior notes due 2041, or being otherwise permitted by the replacement capital covenant. The company commenced the consent solicitation from the holders of the 2041 notes on April 2.