Lincoln National prices $500M subordinated notes at 6.80% to optimize capital

Key Facts

As part of its capital structure management in a high interest rate environment, Lincoln National Corporation (LNC) has completed a public offering of $500 million in 6.800% Fixed-to-Fixed Reset Rate Subordinated Notes due 2056. Proceeds will be used for general corporate purposes and to provide flexibility for repurchasing or redeeming up to $1 billion of high-coupon preferred stock, according to the official statement.

The issuance comes amid stable demand in the insurance debt market, with the new notes' 6.8% coupon reflecting current conditions for subordinated debt. LNC shares closed at $36.58 on June 29, 2026, per market data. The company had been seeking to lower its cost of capital by replacing high-yield preferred shares with cheaper debt.

Investors will watch for future announcements on preferred stock redemption as proceeds are deployed. At the last close, the stock trades below its intraday high of $36.92. No specific earnings or economic events are on the near-term calendar for LNC, but focus will remain on upcoming quarterly results and capital management strategy updates.