Summary
Affiliated Managers Group, Inc. (AMG) announced on November 3, 2011, the establishment of a new $1.0 billion senior unsecured credit facility. This facility comprises a $750 million revolving credit facility, which amends and restates their previous facility, and a new $250 million term loan. Both components were arranged with Bank of America, N.A., as the administrative agent. The new credit facility provides AMG with enhanced financial flexibility and capital resources. The majority of the facility has a five-year maturity, extending to November 2016, with a portion of the revolver maturing in January 2015. The company also retains the option to expand both the revolving and term loan facilities by up to $150 million and $250 million, respectively, subject to certain conditions. The facility includes standard financial covenants and provisions typical for such agreements.
Key Highlights
- 1Entered into a $1.0 billion senior unsecured credit facility on November 3, 2011.
- 2Facility includes a $750 million revolving credit facility (amended and restated) and a new $250 million term loan.
- 3Bank of America, N.A. serves as the administrative agent.
- 4The term loan and a significant portion of the revolver mature in five years (November 3, 2016).
- 5Company has the option to increase the revolving facility by up to $150 million and the term loan by up to $250 million.
- 6Credit facility contains financial covenants related to leverage and interest coverage.
- 7Standard affirmative and negative covenants are included, similar to previous agreements.