Summary
Affiliated Managers Group, Inc. (AMG) announced on December 5, 2005, the entry into a new Amended and Restated Credit Agreement, establishing a $550 million senior revolving credit facility. This facility replaces their previous $405 million credit line, increasing their borrowing capacity by $145 million and providing greater financial flexibility. The agreement also includes an option to further increase the facility by an additional $100 million, subject to lender consent, indicating potential future growth or strategic initiatives. The new credit facility is secured by a pledge of subsidiary stock and includes guarantees from wholly-owned domestic subsidiaries. It also contains standard financial covenants related to net worth, leverage, and interest coverage, along with customary affirmative and negative covenants that limit certain corporate actions such as indebtedness, liens, dividends, and fundamental changes. Investors should note that these covenants and events of default could impact the company's operational and financial flexibility.
Key Highlights
- 1AMG entered into a new $550 million senior revolving credit facility, an increase from the previous $405 million facility.
- 2The new credit facility provides increased borrowing capacity and financial flexibility for the company.
- 3There is an option to increase the facility by an additional $100 million, subject to lender approval.
- 4The credit facility is secured by a pledge of subsidiary capital stock and guaranteed by wholly-owned domestic subsidiaries.
- 5The agreement includes financial covenants regarding net worth, leverage, and interest coverage.
- 6Customary affirmative and negative covenants are in place, including limitations on debt, liens, dividends, and fundamental corporate changes.
- 7The filing includes the full Amended and Restated Credit Agreement as an exhibit.