) announced the pricing of $600 million worth of 3.125% senior
notes, having maturity dates in 2022. The offering is expected to
culminate on November 8, subject to customary closing conditions.
BANK OF AMER CP (BAC): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
INVESCO LTD (IVZ): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis
To read this article on Zacks.com click here.
The notes are offered at a price of 99.921% of the principal
amount. These notes will pay interest on a semi-annual basis in
Invesco stated that the net proceeds from the offering will be
deployed for repayment (in part or full) of amounts drawn on the
credit facility. Moreover, the funds will be utilized to
purchase, redeem or retire the existing 5.375% senior notes due
in 2013 and 5.375% senior notes maturing in 2014. The remaining
amount, if any, will be utilized for general and corporate
The joint book-running managers for this senior notes offering
are Citigroup Global Markets Inc. - a division of
); Merrill Lynch, Pierce, Fenner & Smith Incorporated - a
Bank of America Corporation
) and Morgan Stanley & Co. LLC - a unit of
The main idea behind this debt refinancing is to further lower
Invesco's interest expenses. Total interest expenses as of
September 30, 2012 stood at $39.6 million, down 17% from the
prior-year period. Further, Invesco reported total debt of
$1,285.1 million as of September 30, 2012, against $1,284.7
million as of December 31, 2011. Additionally, credit facility
balance was $754.5 million as of September 30, 2012, as against
$811.0 million as of June 30, 2012.
In the stringent regulatory landscape, the aforementioned
offering is expected to further strengthen Invesco's balance
sheet as well as support its future growth. Additionally, it will
help the company bring down its cost of capital.
Invesco currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. Considering the fundamentals, we also
maintain a long-term Neutral recommendation on the stock.