PRUDENTIAL FINANCIAL INC
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
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15. Short-Term and Long-Term Debt
- SHORT-TERM AND LONG-TERM DEBT
Short-term Debt
The table below presents the Company’s short-term debt as of the dates indicated:
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| ($ in millions) | ||
| Commercial paper: | ||
| Prudential Financial | $25 | $25 |
| Prudential Funding, LLC | 849 | 849 |
| Subtotal commercial paper | 874 | 874 |
| Current portion of long-term debt: | ||
| Senior notes | 56 | 536 |
| Mortgage debt | 32 | 33 |
| Subtotal current portion of long-term debt | 88 | 569 |
| Subtotal | 962 | 1,443 |
| Less: assets under set-off arrangements | 0 | 0 |
| Total short-term debt(1) | $962 | $1,443 |
| Supplemental short-term debt information: | ||
| Portion of commercial paper borrowings due overnight | $225 | $175 |
| Daily average commercial paper outstanding for the quarter ended | $2,267 | $2,389 |
| Weighted average maturity of outstanding commercial paper, in days | 10 | 11 |
| Weighted average interest rate on outstanding commercial paper | 3.88% | 3.72% |
(1)Includes Prudential Financial debt of $81 million and $561 million at September 30, 2026 and December 31, 2025, respectively.
Prudential Financial and certain subsidiaries have access to external sources of liquidity, including membership in the FHLBNY, a funding agreement facility with the Federal Agricultural Mortgage Corporation (“Farmer Mac”), commercial paper programs and contingent financing facilities in the form of facility agreements. The Company also maintains syndicated, unsecured committed credit facilities as an alternative source of liquidity. At September 30, 2026, no amounts were drawn on these syndicated, unsecured committed credit facilities. For additional information regarding these sources of liquidity, see Note 18 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Long-term Debt
The table below presents the Company’s long-term debt as of the dates indicated:
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| (in millions) | ||
| Fixed-rate obligations: | ||
| Surplus notes subject to set-off arrangements(1)(2) | $16,588 | $15,744 |
| Senior notes | 11,054 | 10,823 |
| Mortgage debt(3) | 164 | 134 |
| Floating-rate obligations: | ||
| Line of credit | 170 | 255 |
| Mortgage debt(3) | 37 | 49 |
| Junior subordinated notes(4) | 8,343 | 7,595 |
| Subtotal | 36,356 | 34,600 |
| Less: assets under set-off arrangements(1) | 16,588 | 15,744 |
| Total long-term debt(5) | $19,768 | $18,856 |
(1)The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes included in long-term debt.
(2)Amount includes $8.0 billion of surplus notes used to finance Guideline AXXX reserves for business reinsured to Somerset Re in March 2024. See Note 12 for additional information.
(3)Includes $201 million and $184 million of debt denominated in foreign currency at September 30, 2026 and December 31, 2025, respectively.
(4)Includes Prudential Financial debt of $8,303 million and $7,555 million at September 30, 2026, and December 31, 2025, respectively. Also includes subsidiary debt of $40 million denominated in foreign currency at both September 30, 2026, and December 31, 2025.
(5)Includes Prudential Financial debt of $19,357 million and $18,378 million at September 30, 2026 and December 31, 2025, respectively.
At September 30, 2026 and December 31, 2025, the Company was in compliance with all debt covenants related to the borrowings in the table above.
In December 2025, the Company entered into an agreement with an external counterparty that allows for the issuance by PICA of up to $750 million in principal amount of surplus notes in return for a corresponding amount of credit-linked notes issued by a special-purpose wholly-owned subsidiary of the Company. As of September 30, 2026, $292 million in principal amount of these surplus notes and credit-linked notes were outstanding. The surplus notes and credit-linked notes eliminate upon consolidation and are not reflected in the Company’s financial statements nor in the table above.
PICA holds these credit-linked notes as assets supporting statutory requirements and can redeem the principal amount of these outstanding credit-linked notes for cash upon the occurrence of specified liquidity stress events affecting PICA. Under the agreement, the external counterparty has agreed to fund any such payments under these credit-linked notes in return for the receipt of fees. To date, no such payments under these credit-linked notes have been required.
Senior Notes
In August 2024, the Company recommenced sales of InterNotes® Retail Notes under its shelf registration statement. These notes support the Company’s Retirement business through the purchase of funding agreements on which the segment will earn investment spread. As of September 30, 2026, the outstanding balance of the InterNotes® Retail Notes was $968 million of which $750 million was utilized for Retirement, as described above and $218 million were used for general corporate purposes.
Junior Subordinated Notes
In June 2026, the Company issued $750 million in aggregate principal amount of 6.25% junior subordinated notes due June 2056.
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