Summary
Affiliated Managers Group, Inc. (AMG) announced on September 23, 2020, the successful completion of a $250 million issuance of 4.750% Junior Subordinated Notes due 2060. These notes are unsecured and have a maturity date of September 30, 2060. The company also granted underwriters an option to purchase an additional $37.5 million in notes to cover potential over-allotments. The net proceeds from this offering are intended for general corporate purposes, which may include debt repayment, share repurchases, and strategic investments in investment management firms. This issuance expands AMG's long-term debt structure, offering a fixed interest rate over a significant duration.
Key Highlights
- 1Completion of $250 million issuance of 4.750% Junior Subordinated Notes due 2060.
- 2Underwriters have a 30-day option to purchase an additional $37.5 million in notes.
- 3Proceeds to be used for general corporate purposes, including debt repayment, share repurchases, and investments.
- 4Notes are unsecured junior subordinated obligations of the company.
- 5Maturity date set for September 30, 2060.
- 6Interest rate fixed at 4.750% per annum, payable quarterly.
- 7Company has the right to defer interest payments and redeem notes under specific conditions.
Frequently Asked Questions
This 8-K filing announces the completion of Affiliated Managers Group, Inc.'s issuance and sale of $250 million in 4.750% Junior Subordinated Notes due 2060, and the related underwriting agreement.
AMG intends to use the net proceeds for general corporate purposes. This may include repaying existing indebtedness, repurchasing the company's shares, and making investments in new and existing boutique investment management firms.
The notes mature on September 30, 2060, bear interest at a fixed rate of 4.750% per year, payable quarterly, and are unsecured junior subordinated obligations of AMG. The company has the right to defer interest payments and has specific conditions under which it can redeem the notes.
Yes, the company has granted underwriters an option, exercisable for 30 days from September 17, 2020, to purchase up to an additional $37.5 million aggregate principal amount of these notes to cover potential over-allotments.