Affiliated Managers Group, Inc. (NYSE: AMG), 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.
Affiliated Managers Group, Inc.
Brett S. Perryman or Laura O’Brien,
617-747-3300
ir@amg.com
