By Jay Heflin - 06/14/10 02:03 PM EDT
"We appreciate the critical role the government and the American taxpayers have played in stabilizing the financial markets, and we are pleased to announce a plan to repurchase Treasury's investment sooner than originally anticipated," said Dennis R. Glass, the firm's president and CEO, in prepared remarks. "Lincoln Financial always viewed this investment as temporary capital and intended to return it as soon as it was prudent."
The company plans to use a portion of the net proceeds of the offerings to repurchase the Treasury's preferred shares once it has received approval to do so. Following the repayment, the Treasury will continue to hold warrants to purchase about 13 million shares of the firm's common stock at an exercise price of $10.92 per share. The company does not intend to repurchase the warrants.