Summary
Ameriprise Financial, Inc. (AMP) has filed an 8-K report detailing a significant debt offering. On May 27, 2009, the company entered into an Underwriting Agreement to issue $200 million in aggregate principal amount of 7.75% Senior Notes due 2039. This issuance, which could increase to $230 million if underwriters exercise their over-allotment option, aims to raise capital for general corporate purposes. The notes are senior unsecured obligations, ranking equally with other senior unsecured indebtedness and senior to subordinated debt. The offering is conducted through a prospectus supplement filed with the SEC.
Key Highlights
- 1Ameriprise Financial entered into an Underwriting Agreement on May 27, 2009.
- 2The agreement facilitates the offering and sale of $200,000,000 in principal amount of 7.75% Senior Notes due 2039.
- 3An option exists for underwriters to purchase an additional $30,000,000 in principal amount, bringing the potential total to $230,000,000.
- 4The Notes are senior unsecured obligations of the Company.
- 5Interest on the Notes accrues at 7.75% per annum and is payable quarterly.
- 6The Company has the option to redeem the Notes on or after June 15, 2014.
- 7The filing also includes the Company's computation of consolidated ratios of earnings to fixed charges.
Frequently Asked Questions
This 8-K filing primarily announces Ameriprise Financial's entry into a material definitive agreement for the issuance and sale of $200 million (potentially up to $230 million) of its 7.75% Senior Notes due 2039.
The Notes bear a fixed interest rate of 7.75% per annum, payable quarterly, and mature in 2039. They are senior unsecured obligations of Ameriprise Financial. The company can redeem the notes starting June 15, 2014.
The principal amount offered is $200,000,000. However, the Underwriting Agreement includes an over-allotment option for the underwriters to purchase an additional $30,000,000 in principal amount, potentially bringing the total raised to $230,000,000.
The filing also includes the Company's computation of consolidated ratios of earnings to fixed charges for various fiscal years and periods, as filed with the SEC.