Moody’s rates In­vesco’s un­se­cured notes

The Pak Banker - - Front Page -


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.

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