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Reinsurance Group of America Announces Pricing of Subordinated Debentures

1. RGA has priced $700 million of 6.650% subordinated debentures due 2055. 2. The offering will enhance RGA’s financial flexibility and long-term capital structure.

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FAQ

Why Bullish?

Issuing new subordinated debt at a favorable rate improves RGA's capital position, similar to past successful offerings that subsequently raised stock prices. This issuance, due to the strong coupon, could attract investors looking for yield, positively affecting RGA’s stock performance.

How important is it?

The announcement of this debt issuance is likely to positively influence investor sentiment and provide essential financial backing for RGA's future projects, hence the importance score reflects strong market implications.

Why Long Term?

The capital raised will support RGA's operational growth over time, similar to earlier cases where debt funding facilitated long-term strategic initiatives resulting in sustained revenue growth.

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METPRULNC
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA) (“RGA”) announced today that it has priced an aggregate principal amount of $700 million of 6.650% Fixed-Rate Reset Subordinated Debentures due 2055 (the “2055 Debentures”) pursuant to an underwritten registered public offering (the “Offering”). The 2055 Debentures have a maturity date of September 15, 2055, an issue price of 100% and feature a fixed-rate coupon of 6.650%, payable semiannually in arrears. RGA exp.

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