Summary
Marsh & McLennan Companies, Inc. (MRSH) announced the closing of a significant debt offering on September 16, 2005, successfully raising approximately $1.29 billion in net proceeds. This offering consisted of $550 million in 5.15% senior notes due 2010 and $750 million in 5.75% senior notes due 2015. These notes were issued under the company's existing shelf registration statement and prospectus supplement. The primary purpose of this debt issuance is to repay a portion of the company's outstanding bank borrowings. This move indicates a strategic effort by Marsh & McLennan to manage its debt structure and potentially refinance existing obligations with longer-term, fixed-rate debt. Investors should note the substantial principal amount and the fixed interest rates associated with these new notes.
Key Highlights
- 1Closed a debt offering totaling $1.3 billion (aggregate principal amount of $550M in 2010 Notes and $750M in 2015 Notes).
- 2Received net proceeds of approximately $1.29 billion from the offering.
- 3The proceeds will be used to repay a portion of outstanding bank borrowings.
- 4Issued 5.15% senior notes due 2010 and 5.75% senior notes due 2015.
- 5The offering was made under the company's shelf registration statement on Form S-3.
- 6Entered into an Underwriting Agreement with Citigroup Global Markets Inc. and Goldman, Sachs & Co.