This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
On Monday, Invesco Ltd. (
- Analyst Report
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.
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 arrears.
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 purposes.
The joint book-running managers for this senior notes offering are Citigroup Global Markets Inc. – a division of Citigroup, Inc. ( C - Analyst Report ) ; Merrill Lynch, Pierce, Fenner & Smith Incorporated – a subsidiary of Bank of America Corporation ( BAC - Analyst Report ) and Morgan Stanley & Co. LLC – a unit of Morgan Stanley ( MS - Analyst Report ) .
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.
Please login to Zacks.com or register to post a comment.