8-KMaterial AgreementsFinancial EventsExhibits & Filings

AFFILIATED MANAGERS GROUP, INC. 8-K Report, Material Agreement (Oct 26, 2021)

Filed October 26, 2021For Securities:AMGMGRBMGRMGRDMGRE

Summary

Affiliated Managers Group, Inc. (AMG) has executed an amendment and restatement of its credit facilities, enhancing its financial flexibility. On October 25, 2021, the company entered into a Second Amended and Restated Credit Agreement for a $1.25 billion revolving credit facility and a Fourth Amended and Restated Term Credit Agreement for a $350 million term loan. Both facilities mature in October 2026 and are with Bank of America, N.A. This strategic move allows for potential increases in borrowing capacity, up to an additional $500 million for the revolving facility and $75 million for the term loan, subject to certain conditions. The extended maturity dates and increased capacity provide AMG with substantial resources to support its ongoing operations and strategic initiatives. The revolving credit facility's proceeds are earmarked for general corporate purposes, including working capital, investments in affiliates, debt repayments, share repurchases, and dividend payments. The filing also notes the inclusion of customary financial covenants, affirmative and negative covenants, and events of default, with provisions for LIBOR succession, all designed to ensure prudent financial management while maintaining operational flexibility.

Key Highlights

  • 1AMG executed new credit agreements on October 25, 2021, amending and restating its existing revolving and term loan facilities.
  • 2The Revolving Credit Agreement provides a $1.25 billion senior unsecured multicurrency revolving credit facility maturing on October 23, 2026.
  • 3The Term Credit Agreement provides a $350 million senior unsecured term loan credit facility also maturing on October 23, 2026.
  • 4Both facilities have the potential for increases: up to $500 million for the revolving facility and up to $75 million for the term loan, subject to conditions.
  • 5Borrowings under the revolving facility can be used for general corporate purposes, including working capital, investments, debt repayment, share buybacks, and dividends.
  • 6The agreements include standard financial covenants (leverage, interest coverage) and other customary covenants and events of default.
  • 7The facilities provide AMG with significant financial flexibility and extended maturity profiles for its debt obligations.

Frequently Asked Questions

AMG has amended and restated its existing credit agreements. The revolving credit facility is now for $1.25 billion and the term loan facility is for $350 million, both maturing in October 2026. The company also has the option to increase the size of these facilities under certain conditions.

The revolving credit facility is available for general corporate purposes, including working capital, investments in affiliates, repayment of debt, repurchase of common stock, and payment of dividends. The term loan facility continues to provide a source of funding.

Both the Second Amended and Restated Credit Agreement (Revolving Credit Facility) and the Fourth Amended and Restated Term Credit Agreement (Term Credit Facility) mature on October 23, 2026.

Yes, subject to certain conditions, AMG may increase the commitments under the Revolving Credit Agreement by up to $500 million and under the Term Credit Agreement by up to $75 million.