The underwriters will have a 30-day option to purchase up to an additional 15% of the offered amount of common shares from the company.

JP Morgan Securities and Merrill Lynch & Company will serve as global coordinators and Goldman, Sachs & Company and Morgan Stanley & Company will serve as joint book-running managers for the offering.

Lincoln Financial said that the common stock offering is a part of its broader capital plan that also includes raising up to $500 million in senior debt and targeting approximately $950 million in preferred stock. Any preferred stock would be issued pursuant to the US Treasury's capital purchase program (CPP).

Lincoln currently intends to contribute approximately $1 billion of the proceeds to its principal insurance subsidiary, The Lincoln National Life Insurance Company, with the remaining $1 billion held at the holding company for general corporate purposes, including the repayment of short-term debt and investment in the company's core businesses.

Lincoln believes that participation in the CPP provides additional capital flexibility. The company expects to repay this financing as soon as practicable, taking into consideration appropriate balance sheet strength and capital market conditions.

The final level of Lincoln's participation is expected to be announced by the end of June 2009; in May 2009, the company received preliminary approval for up to $2.5 billion under the program. Any participation in the CPP would be subject to final approval and finalization of terms and conditions.

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