Summary
Ameriprise Financial, Inc. (AMP) announced on March 13, 2019, that it has entered into a material definitive agreement for the issuance and sale of $500,000,000 principal amount of its 3.000% Senior Notes due 2022. This offering, conducted under an Underwriting Agreement with several prominent underwriters, represents a capital raise activity for the company. The net proceeds from this offering are expected to be used for general corporate purposes. The Senior Notes are unsecured obligations of the company, ranking equally with other senior unsecured indebtedness. Investors should note the semi-annual interest payments and the company's option to redeem the notes under specific conditions, which may impact long-term yield expectations.
Key Highlights
- 1Ameriprise Financial entered into an Underwriting Agreement on March 12, 2019, to issue and sell $500,000,000 in 3.000% Senior Notes due 2022.
- 2The offering is being conducted through Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as underwriters.
- 3The Senior Notes are governed by an Indenture with U.S. Bank National Association as trustee.
- 4These notes represent senior unsecured obligations of the Company, ranking on par with other senior unsecured indebtedness.
- 5Interest on the Notes will be paid semi-annually at a rate of 3.000% per annum.
- 6The Company retains the option to redeem the Notes, in whole or in part, under specified terms related to the applicable Treasury rate plus 15 basis points.
- 7The expected delivery of the Notes is on March 22, 2019.