(Reuters) – MetLife Inc is asking some bond investors and shareholders to approve changes that are necessary for the insurer to make interest payments as usual, and continue returning capital to common shareholders, following its recent Brighthouse Financial Inc spinoff.
In separate notices on Thursday, MetLife asked holders of some $3.2 billion worth of debt to approve changes to “interest payment tests” in bond indentures and called a special meeting of shareholders to approve changes to “dividend payment tests” in the company’s charter.
Terms - MetLife - Dividends - Stock - Buying
Under current terms, MetLife would be barred from paying dividends on common stock or buying back shares if its equity drops by more than 10 percent and it reports a cumulative net loss over four consecutive quarters.
In divesting Brighthouse, MetLife’s total equity dropped by about 20 percent, and analysts have cautioned that it may not earn enough in...
Wake Up To Breaking News!