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AFFILIATED MANAGERS GROUP, INC. 8-K Report, Material Agreement (Jul 13, 2021)

Filed July 13, 2021For Securities:AMGMGRBMGRMGRDMGRE

Summary

Affiliated Managers Group, Inc. (AMG) has announced the completion of a $200 million issuance of 4.200% Junior Subordinated Notes due 2061. These notes are unsecured and junior subordinated obligations of the company, with a maturity date of September 30, 2061. The interest rate is fixed at 4.200% per annum, payable quarterly, though the company retains the right to defer payments as outlined in the prospectus supplement. The net proceeds from this issuance are earmarked for general corporate purposes, which may include debt repayment, share repurchases, and strategic investments in investment management firms. The company has the option to redeem the notes starting September 30, 2026, at par, with provisions for early redemption under specific tax or rating agency events. This financing provides AMG with additional capital flexibility for its ongoing strategic initiatives and operational needs.

Key Highlights

  • 1Completion of a $200 million issuance of 4.200% Junior Subordinated Notes due 2061.
  • 2Notes are unsecured and junior subordinated debt with a long maturity of 35 years.
  • 3Fixed annual interest rate of 4.200%, payable quarterly.
  • 4Company has the right to defer interest payments.
  • 5Proceeds are intended for general corporate purposes, including debt repayment, share buybacks, and strategic investments.
  • 6Redemption option available from September 30, 2026, at par.
  • 7Specific provisions for early redemption due to tax or rating agency events.

Frequently Asked Questions

The net proceeds from the issuance of these notes are intended for general corporate purposes. This includes potential uses such as repaying existing indebtedness, repurchasing company shares, and making investments in new and existing investment management firms.

The notes have an aggregate principal amount of $200 million, a fixed interest rate of 4.200% per annum, and a maturity date of September 30, 2061. They are junior subordinated obligations and are unsecured. Interest is payable quarterly, but the company has the right to defer payments.

AMG may redeem the notes at any time on or after September 30, 2026, at their principal amount plus accrued interest. The company also has the option to redeem the notes in whole prior to September 30, 2026, under specific circumstances related to tax or rating agency events, at specified redemption prices.

No, these are 'Junior Subordinated Notes,' meaning they rank below senior debt in the company's capital structure in the event of liquidation or bankruptcy. They are also unsecured obligations.