Summary
Ameriprise Financial, Inc. (AMP) announced on April 2, 2020, the issuance of $500 million in 3.000% Senior Notes due 2025. This offering was conducted under an underwriting agreement with several major financial institutions and was registered under the company's existing S-3 registration statement. The notes are senior unsecured obligations and will rank equally with other senior unsecured debt of the company, subordinate to any secured debt. The proceeds from this offering are intended to support the company's general corporate purposes. These notes carry a fixed interest rate of 3.000% per annum, payable semi-annually. The company retains the option to redeem the notes early under specific conditions. Before March 2, 2025 (the "Par Call Date"), redemption will occur at a price based on present values discounted at the treasury rate plus 45 basis points. On or after the Par Call Date, the notes can be redeemed at 100% of their principal amount. This debt issuance provides Ameriprise with additional liquidity and financial flexibility.
Key Highlights
- 1Ameriprise Financial Inc. issued $500 million in 3.000% Senior Notes due 2025.
- 2The issuance was conducted on April 2, 2020, through an underwriting agreement with a syndicate of reputable investment banks.
- 3The notes are senior unsecured obligations of the company.
- 4Interest on the notes is fixed at 3.000% per annum, payable semi-annually.
- 5The company has the option to redeem the notes prior to maturity under specified terms, including a 'Par Call Date' on March 2, 2025.
- 6The issuance was registered under Ameriprise's existing Form S-3 registration statement.
- 7The offering aims to enhance the company's liquidity and support general corporate purposes.