Tuesday, Affiliated Managers Group, Inc. (AMG), a diversified asset management company, said that it has sold $460 million of convertible senior notes due 2038.
The notes 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.
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 Boston, Massachusetts-based company said that upon conversion, the notes may be settled in cash, shares of AMG common stock or a combination of both. AMG may redeem the notes at its option beginning August 2013, and holders would have the right to require AMG to repurchase their notes on specified dates or upon the occurrence of a fundamental change.
Commenting on the sale, the company's executive vice president and chief financial officer, Darrell Crate said, "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."
AMG is currently trading at $92.34, down $3.16 or 3.31%.
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