Moody’s rates Invesco’s unsecured notes
Global rating agency Moody’s has assigned an A3 rating to Invesco Ltd.’s new $600 million senior unsecured notes due 2022.
Net proceeds from this offering will be used to redeem $197.1 million of 5.375% notes due December 15, 2014 that will be called, with the balance to be used to repay the majority of the $754.5 million that was outstanding on its $1.25 billion revolving credit facility as of September 30. Invesco’s rating outlook is stable. The note offering is part of the company’s debt refinancing plan which includes the retirement of the 2014 senior notes and the redemption of $333.5 million of 5.375% notes at their February 27, 2013 maturity. Invesco’s new debt will be issued through an indirect wholly-owned finance subsidiary, Invesco Finance PLC (“Issuer”). The notes will be guaranteed on a senior unsecured basis by Invesco Ltd. All existing subsidiary guarantees of the called and maturing debt will be released in 2013, and at that time the Issuer will also become the sole borrower under the credit facility, with a similar parental guarantee. Overall leverage will remain the same, although Moody’s estimates that total interest costs will be reduced.
Moody’s A3 senior debt rating on Invesco is based on the company’s position as a leading global asset manager with diverse global capabilities, including equity and fixed income management, ETF products.