Principal Financial Group Considers Put Option Exercise While Popular, Inc. Declares Quarterly Dividend

Principal Financial Group, Inc. (NYSE: PFG) disclosed in its Form 8-K filing dated February 26, 2025, that the company intends to take a series of actions connected with its contingent liquidity funding arrangement originally completed in March 2018. Under that arrangement, the company raised $400 million through the issuance of 400,000 4.111% pre-capitalized trust securities (2028 P-Caps) by High Street Funding Trust I. Central to the agreement is the Put Option Agreement, which provides Principal Financial Group the right to require the trust to purchase its 4.111% Senior Notes due 2028 in exchange for a portfolio of principal and interest strips of U.S. Treasury securities.

According to the filing, contingent upon a new offering, sale, and settlement of pre-capitalized trust securities with a 2055 maturity, the company plans to:
• Exercise its put option in full under the Put Option Agreement,
• Issue $400 million aggregate principal amount of its 2028 Notes to the trust in exchange for the eligible assets,
• Waive its right to repurchase the 2028 Notes, and
• Direct The Bank of New York Mellon to dissolve the trust and deliver the 2028 Notes pro rata to the beneficial holders of the 2028 P-Caps.

The proceeds from this proposed transaction are expected to be used to redeem or repay the outstanding $400 million aggregate principal amount of its 3.400% Senior Notes, which mature on May 15, 2025. The filing noted that the report is provided for informational purposes only and does not constitute an offer to buy or sell any securities, nor does it guarantee that any of the planned transactions will be completed.

In an accompanying exhibit (EX-99.1), Popular, Inc. (NASDAQ: BPOP) announced that its Board of Directors has approved a quarterly cash dividend of $0.70 per share on its outstanding common stock. The dividend is scheduled to be payable on April 1, 2025, to shareholders of record as of the close of business on March 18, 2025.

Both announcements reflect the ongoing efforts of their respective companies to manage their capital structure and provide shareholder returns. Principal Financial Group’s proposed actions hinge on the successful issuance and settlement of new pre-capitalized trust securities, while Popular, Inc.’s dividend declaration underscores its commitment to delivering consistent returns to its common stock investors.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Principal Financial Group’s 8K filing here.

About Principal Financial Group

Principal Financial Group, Inc provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services.