MetLife Units Vend Notes

Recently, a couple of subsidiaries of MetLife Inc. (MET - Analyst Report) sold off senior notes worth approximately $2 billion. According to the Reuters, on Wednesday, MetLife Global Funding I vended off its 5-year senior notes worth $850 million in the 144A private placement market. The quantum of the notes offering was increased from $800 million planned initially.

These notes carried an issue price of $99.949 with maturity on September 29, 2015. These fixed security notes are projected to have a spread of 120 basis points (bps) over the U.S. Treasuries, bearing a fixed interest rate of 2.50% and yield rate of 2.511%. Interest on the notes is payable semi-annually, in equal installments, commencing March 29, 2011. The settlement is dated September 29, 2010.

MetLife appointed Barclays plc (BAC - Analyst Report), Credit Suisse Group (CS - Snapshot Report), Deutsche Bank AG (DB - Snapshot Report) and JPMorgan Chase & Co. (JPM - Analyst Report) as the joint book-running managers for the sale.

Separately, on Tuesday, MetLife Institutional Funding II retired $1.35 billion of its notes in a two-part sale in the 144A private placement market. The first set of $1 billion notes carried an issue price of $100.00, to mature on September 20, 2011. These short-term notes bear a fixed interest rate and yield rate of 15 bps over the existing 3-month LIBOR rate. Interest on the notes is payable quarterly, in equal installments, commencing December 20, 2010. The settlement is dated September 27, 2010.

Additionally, the second set of $350 million notes carried an issue price of $100.00, to mature on March 27, 2012. These short-term notes bear a fixed interest rate and yield rate of 40 bps over the existing 3-month LIBOR rate. Interest on the notes is payable quarterly, in equal installments. The settlement is dated September 27, 2010.

MetLife appointed Deutsche Bank and UBS AG (UBS - Snapshot Report) as the joint book-running managers for the two-part sale of $1.35 billion notes.

All the variety of MetLife’s notes discussed above carry a rating of “Aa3” and “AA-” from Moody’s Investor Service of Moody’s Corp. (MCO - Analyst Report) and Standard & Poor’s, respectively.

However, any details regarding the utilization of the net proceeds from the entire notes’ sale remains undisclosed.

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