The Lincoln Conundrum: A Cautionary Tale of Value Investing The recent issuance of $500 million in subordinated notes by Lincoln National Corporation (NYSE:LNC) has sparked interest among investors and analysts.
LNC's decision to issue these notes at face value, with a fixed to fixed reset interest rate of 6. 8%, indicates the company is adjusting its capital structure.
LNC plans to use the proceeds for general corporate purposes, including redeeming higher cost preferred stock. This move optimizes the company's capital structure, given current market conditions and high debt levels.