Summary
Affiliated Managers Group, Inc. (AMG) announced on September 22, 2015, a significant refinancing of its debt structure. The company entered into new credit facilities totaling $1.65 billion, comprising a $1.3 billion five-year senior unsecured revolving credit facility and a $350 million five-year senior unsecured term loan facility. These new facilities, with a maturity date of September 30, 2020, replace existing credit agreements and provide the company with enhanced financial flexibility. Notably, a portion of the proceeds from these new credit facilities was used to refinance existing indebtedness, with the remainder earmarked for general corporate purposes. These purposes include strategic investments in its affiliates, share repurchases, and importantly, the redemption of AMG's 5.25% Senior Notes due 2022. This proactive debt management signals AMG's intent to optimize its capital structure and potentially reduce future interest expenses.
Key Highlights
- 1Entered into new $1.3 billion five-year senior unsecured revolving credit facility and a $350 million five-year senior unsecured term loan facility.
- 2Total new credit facilities amount to $1.65 billion, maturing on September 30, 2020.
- 3New facilities include options to increase revolving commitments by up to $500 million and term loan by an additional $100 million.
- 4Proceeds used to refinance existing credit facilities and for general corporate purposes, including investments and share repurchases.
- 5Issued a notice to redeem all outstanding 5.25% Senior Notes due 2022.
- 6Existing credit facilities dated April 30, 2013, and April 15, 2014, have been terminated.
- 7New facilities are subject to financial covenants regarding leverage and interest coverage, along with customary covenants.