Lincoln National Corporation Issues $500 Million in Subordinated Notes at 6.800%

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Summary · why it matters

Lincoln National Corporation has entered into an underwriting agreement to issue $500 million in subordinated notes. The notes carry a fixed-to-fixed reset interest rate of 6.800% and will mature on July 15, 2056. The offering was priced at face value and completed on June 29, 2026, with the bonds sold at a 1% discount to the underwriting group led by Wells Fargo Securities, BofA Securities, Goldman Sachs, Morgan Stanley, and TD Cowen Securities. The notes are unsecured, rank below senior debt, and pay a fixed 6.800% rate until July 15, 2036, after which the rate resets every five years based on the 5-year US Treasury yield plus 2.400%. Proceeds will be used for general corporate purposes, potentially including redeeming higher-cost preferred stock. A Jefferies analyst reiterated a Buy rating on the stock with a $56 price target on June 15.

Impact on assets 5

Financials▲ · 5 stocks
Lincoln National Corporation
LNC
± MixedCapitalrelevance

Issued $500M subordinated notes at 6.800% for general corporate purposes; debt issuance is neutral to slightly negative due to higher leverage, but proceeds may redeem higher-cost preferred.

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