Summary
Affiliated Managers Group, Inc. (AMG) has entered into a new $385 million senior unsecured term loan credit facility, with the option to borrow an additional $65 million, to fully refinance its existing term loan facility. This strategic move aims to replace the previous debt with a new facility that, while having similar commercial terms, features updated interest rates and a new maturity date of May 31, 2021. The new facility includes standard financial covenants related to leverage and interest coverage, alongside customary affirmative and negative covenants, subject to certain thresholds and exceptions. The company has also terminated the previous credit agreement in conjunction with this refinancing.
Key Highlights
- 1Entered into a new $385 million senior unsecured term loan credit facility.
- 2The new facility includes an option to borrow up to an additional $65 million.
- 3Proceeds from the new facility were used to fully repay a $385 million existing senior unsecured term loan.
- 4The commercial terms are largely unchanged, with modifications to interest rates and maturity date.
- 5The new Term Loan Facility matures on May 31, 2021.
- 6The facility contains financial covenants for leverage and interest coverage, along with customary covenants and events of default.
Frequently Asked Questions
This filing announces Affiliated Managers Group, Inc.'s entry into a new $385 million senior unsecured term loan credit facility and the subsequent termination of its previous, similar facility. The new loan was used to refinance the existing debt.
While the commercial terms are largely the same, the new Term Loan Facility has updated interest rates and a new maturity date of May 31, 2021. The principal amount is also $385 million, with an option for an additional $65 million.
The new facility includes financial covenants related to the Company's leverage and interest coverage ratios. It also contains customary affirmative and negative covenants, such as limitations on priority indebtedness and asset dispositions, with certain exceptions and minimum thresholds.
The initial amount of the new senior unsecured term loan facility is $385 million. The Company also has the option to borrow an additional $65 million under this facility, bringing the potential total to $450 million.