F&G Annuities & Life slumps as $280 mln stock offering priced

Cannae Holdings

21/03/2025 13:26

** F&G Annuities & Life Inc's FG.N shares down 5.3% premarket to $34.50, over 16-mth low, after equity raise

    ** Des Moines, Iowa-based insurer late Thurs announced pricing of 8 mln shares at $35 for gross raise of $280 mln

    ** Offering price represents 4% discount to stock's last close

    ** FNF shares, which are very thinly traded, ended down nearly 15% on Thurs after co unveiled the offering with BofA and JP Morgan as jt bookrunners

    ** Majority shareholder Fidelity National Financial FNF.N to purchase 4.5 mln shares of the offering, boosting its ownership to ~110.9 mln shares, or 82% stake

    ** F&G plans to use
    net offering proceeds for general purposes, including support of organic growth opportunities

    ** Jacksonville, Florida-based title insurer Fidelity National spun off F&G in Dec 2022

    ** Billionaire investor and sports owner Bill Foley is F&G's board chairman and founder of Fidelity National

    ** Meanwhile, Foley's investment firm Cannae Holdings CNNE.N, which was spun out of Fidelity National in 2017, is facing pressure from shareholder Carronade Capital Management

    ** Carronade on Thurs called for board changes and for CNNE to sell its positions in public cos

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))