Terms

Series

Floating Rate Non-Cumulative Preferred Stock, Series A

Liquidation Preference

$25.00

Rate Type

Floating

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 15, 2010

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Creditors / Debt Obligations Of Metlife, Inc.; Pari Passu With: Fixed Rate Preferred Stock To Be Issued In Connection With The Acquisition, Other Parity Stock; Senior To: Common Stock, Series A Junior Participating Preferred Stock, Non-Voting Convertible Preferred Stock Issued To Citigroup, Other Junior Stock

Credit Rating (Moody's)

Baa1

Credit Rating (S&P)

BBB

Regulatory (Basel III) Call

No

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Shares Offered

24,000,000

Prospectus Summary

MetLife, Inc. (NYSE: MET) is offering 24,000,000 shares of its Floating Rate Non-Cumulative Preferred Stock, Series A, with a $25 liquidation preference and a $0.01 par value, callable at $25 on or after September 15, 2010. Dividends are paid quarterly (March 15, June 15, September 15, December 15) at the greater of (a) 3-month LIBOR plus 100 basis points or (b) a 4.00% floor, providing downside protection while offering upside if rates rise. These shares are non-cumulative: if the board does not declare a dividend for any quarter, that dividend is permanently forfeited and there is no obligation to make it up in future periods. The Series A preferred shares rank senior to MetLife, Inc.'s common stock and all other junior securities with respect to dividends and liquidation distributions, and pari passu with the fixed-rate preferred stock MetLife planned to issue concurrently. However, as obligations of the holding company (MetLife, Inc.) rather than its operating insurance subsidiaries, these shares are structurally subordinated to all policyholder claims, creditor obligations, and debt at the subsidiary level. There is no explicit regulatory capital (Tier 1) call provision, but any optional redemption requires prior Federal Reserve Board approval, meaning the issuer cannot redeem without regulatory consent. At the 4.00% floor and $25 par, the minimum effective annual yield is $1.00 per share ($0.25/quarter). For non-corporate U.S. holders, dividends qualify for the 15% preferential QDI tax rate (for taxable years beginning before January 1, 2009); corporate holders may claim the 70% dividends-received deduction. The dividend stopper prevents MetLife from paying common or junior preferred dividends if the most recent full quarterly dividend on the Series A has not been declared and paid, but the issuer can suspend dividends on the Series A itself without triggering a payment obligation in future periods due to the non-cumulative structure.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If MetLife has not paid full dividends on the Series A preferred shares for the latest completed dividend period, it cannot pay or declare dividends on its common stock or other junior securities.

Other Preferreds from MetLife Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 60 (Average)