LINCOLN NATIONAL CORP 8-K

What Happened
Lincoln National Corporation (LNC) announced on March 27, 2026 that it entered into a Third Amended and Restated Credit Agreement with a syndicate of banks led by Bank of America, N.A. The unsecured facility permits up to $2.0 billion of letters of credit and borrowings, with a commitment termination date of March 27, 2031. Fees include 1.0% per year on issued syndicated letters of credit and a 0.125% per year facility fee on the aggregate commitment; these fees will adjust automatically if LNC’s credit ratings change.

Key Details

• Facility size & term: Up to $2.0 billion commitment; termination date March 27, 2031.
• Fees: 1.0% p.a. on issued syndicated letters of credit; 0.125% p.a. facility fee on total commitment (rating-adjustable).
• Financial covenants: minimum consolidated net worth of $9,932,000,000 plus 50% of net cash proceeds of equity issuances received after Dec 31, 2025; debt-to-capital ratio not to exceed 0.35 to 1.00; secured non‑operating and non‑operating indebtedness capped at 7.5% of total capitalization.
• Other terms: Agreement remains unsecured, includes customary covenants (limits on liens, mergers, dispositions) and events of default (payment, covenant breaches, insolvency, etc.) that could lead to termination or acceleration.

Why It Matters
This agreement provides LNC with a multi-year liquidity backstop and capacity for letters of credit, supporting short-term funding flexibility and operational needs. The fees and covenants tie borrowing costs and certain corporate actions to the company’s credit profile and balance-sheet metrics, so investors should note the covenant thresholds and the potential impact of any future equity issuances. Compliance with these covenants is important because breaches could allow lenders to terminate commitments or demand repayment.