Lincoln Financial Gets $825 Mln Investment From Bain Capital For 9.9% Stake; Stock Climbs

Lincoln National

27.86 CHF 0.10%

• Charts
• News
• Analysen

Kaufen Verkaufen

(RTTNews) - Shares of Lincoln National Corp. (LNC) were gaining around 11 percent in the pre-market activity on the NYSE after the company on Wednesday announced an $825 million strategic growth investment from investment firm Bain Capital.

Lincoln National, with marketing name Lincoln Financial, noted that Bain Capital will acquire a 9.9% stake in the firm. The transaction, subject to customary closing conditions including regulatory approvals, is anticipated to close in the second half of 2025.

The companies have signed a definitive agreement for the sale of a 9.9% equity stake on a post-issuance basis in Lincoln for $825 million in an all-cash transaction. Lincoln will sell around 18.8 million shares of its common stock for $44.00 per share, based on a 25% premium to the 30-day volume-weighted average price as of April 8.

Bain Capital has agreed to certain limitations and restrictions on its ability to divest its ownership stake.

Under the deal, Lincoln and Bain Capital have agreed to enter into a 10-year, non-exclusive strategic investment management relationship. Bain Capital will become an investment manager across a variety of asset classes including private credit, structured assets, mortgage loans, and private equity.

The deal is expected to create significant alignment and long-term value creation opportunities, with a focus on advancing Lincoln's goal of sustained profitable growth.

Lincoln said the transaction provides it with growth capital to deploy toward its strategic priorities, including growing spread-based earnings, advancing its portfolio management efforts and asset sourcing capabilities, and optimizing its legacy life portfolio.

In addition, the deal provides the firm with the financial flexibility to accelerate its goal of reducing its leverage ratio towards its 25% target.

In the pre-market activity on the NYSE, Lincoln National shares were trading at $32.23, up 11.3 percent, after losing around 3.1 percent on Tuesday's market close.