MAY 21, 2020 08:52 AM (EDT)
AM Best Assigns Issue Credit Rating to Brighthouse Financial, Inc.’s New Preferred Shares
FOR IMMEDIATE RELEASE
OLDWICK - MAY 21, 2020 08:52 AM (EDT)
This transaction follows a senior unsecured notes offering of $500 million that Brighthouse executed in the prior week. As expected, the company used those net proceeds to repay a portion of its term loan, bringing that term loan down from $1 billion to $504 million. Brighthouse will use the net proceeds of this preferred issuance to further repay a portion of the term loan balance. The impact of the transaction on leverage is expected to be slightly positive after the company pays down part of its term loan. Following the application of the net proceeds from this preferred issuance, Brighthouse is expected to have $165 million outstanding under its term loan. Interest coverage decreased on a trailing 12-month basis from prior periods, as major hedge gains in first-quarter 2020 reduced earnings before interest and taxes (EBIT).
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.