AMG has some extra cash lying around. The company said that it has completed the sale of $460 million of convertible senior notes due 2038. Darrell Crate, executive vice president and chief financial officer at AMG said that the raising of the new capital in addition to strong cash flow from operations will allow AMG to continue its investment in new companies.
Recently AMG inked two deals in the fund space: the purchase of BoNY's entire ownership interest in Gannett Welsh & Kotler and the purchase of a 60-percent interest in Harding Loevner.
Company Press Release
BOSTON--(BUSINESS WIRE)--Affiliated Managers Group, Inc. (NYSE: AMG - News), a diversified asset management company, announced that it has sold $460 million of convertible senior notes due 2038. As part of the transaction, the initial purchasers exercised an option to purchase up to an additional $60 million principal amount of notes to cover over-allotments.
“The capital raised through this transaction supplements our strong cash flow from operations and substantial credit facility to ensure that we have ample financial capacity to continue to execute the new investments component of our growth strategy,” said Darrell W. Crate, Executive Vice President and Chief Financial Officer.
The securities carry a coupon of 3.95% per annum and a conversion price of $125.65, which is a premium of 40% over AMG’s closing stock price of $89.75 on July 29, 2008. Upon conversion, at AMG’s election, the notes may be settled in cash, shares of AMG common stock or a combination thereof. AMG may redeem the notes at its option beginning August 2013, and holders will have the right to require AMG to repurchase their notes on specified dates or upon the occurrence of a fundamental change.
The offering was made only to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). The notes and the shares of AMG common stock issuable upon conversion will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes.
About Affiliated Managers Group
Affiliated Managers Group is a diversified asset management company with approximately $254 billion in assets at June 30, 2008 (pro forma for pending investments). AMG’s strategy is to generate growth through the internal growth of its existing Affiliates, as well as through investments in new Affiliates. Through AMG’s innovative partnership approach, individual members of each Affiliate’s management team retain or receive significant direct equity ownership in their firm while maintaining operating autonomy. AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. For more information, please visit the Company’s Web site at www.amg.com.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, the ability to complete pending acquisitions, the investment performance of our Affiliates and their ability to effectively market their investment strategies, and other risks detailed from time to time in AMG’s filings with the Securities and Exchange Commission. Reference is hereby made to the “Cautionary Statements” set forth in the Company’s Form 10-K for the year ended December 31, 2007.
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