Invesco Prices $1B Senior Notes - Analyst Blog


Investment manager Invesco Ltd. ( IVZ ) declared the pricing of senior notes worth $1 billion. The notes will be issued in two parts - $600 million and $400 million in aggregate principal amount.

The $600 million notes, which are set to mature on Jan 30, 2024 and carry an annual interest rate of 4.000%, are priced at 99.284% of the principal amount. The $400 million notes priced at 98.298% of the principal amount. These notes carry an interest rate of 5.375% and are scheduled to mature on Nov 30, 2043.

For 4.000% senior notes, interest payment will be due on Jan 30 and Jul 30 every year, starting from Jul 30, 2014 and for the 5.375% senior notes, interest payment will be due on May 30 and Nov 30 every year, starting from May 30, 2014. Invesco expects the offering to close by Nov 12, 2013, subject to the fulfillment of customary closing conditions.

Invesco will utilize the net proceeds from the offerings to repay the whole or partial amount outstanding under their existing credit facility, which stood at $788 million as of Sep 30, 2013. The company has plans to utilize the remaining proceeds for general corporate purposes.

As of Sep 30, 2013, cash and cash equivalents were $1.2 billion and total assets stood at 13.8 billion.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, an arm of Bank of America ( BAC ), Citigroup Global Markets Inc., part of Citigroup Inc. ( C ), and Morgan Stanley & Co. LLC, part of Morgan Stanley ( MS ), are serving as the joint book-running managers of the senior notes offering.

Invesco is a leading independent global investment management company, with a diverse portfolio of services including equity, fixed income, and balanced mutual funds to cater to its large client base that includes institutions, corporations, public entities, and foundations, among others.

Invesco currently holds a Zacks Rank #2 (Buy).

BANK OF AMER CP (BAC): Free Stock Analysis Report

CITIGROUP INC (C): Free Stock Analysis Report

INVESCO LTD (IVZ): Free Stock Analysis Report

MORGAN STANLEY (MS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BAC , C , IVZ , MS

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