OM Asset Management raising $400m in note offerings
Old Mutual announced on Thursday morning that its OM Asset Management division has made underwritten public offerings of $400m aggregate principal amount of senior notes, consisting of $275m of senior notes due 2026 - the ‘Institutional Notes’ - and $125m of senior notes due 2031 - the ‘Retail Notes’.
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The FTSE 100 firm said OMAM intends to use the net proceeds from the offerings to finance the previously disclosed acquisition of a majority interest in Landmark Partners, as well as other general corporate purposes.
It said the Institutional Notes will bear interest at a fixed rate of 4.8% per year, payable on a semiannual basis.
“The total annual interest expense related to the Institutional Notes is expected to be approximately $16.7m per year, including $13.2m of cash interest expense and $3.5m of non-cash amortisation of fees and losses related to an interest rate hedge,” OMAM’s board said in a statement.
“Settlement for the sale of all Institutional Notes is expected to be completed by July 29.”
OMAM said the Retail Notes will bear interest at a fixed rate of 5.125% per year, payable on a quarterly basis.
“The total annual interest expense related to the Retail Notes is expected to be approximately $7m per year, including $6.5m of cash interest expense and $0.5m of non-cash amortisation of fees and losses related to an interest rate hedge,” OMAM’s board confirmed.
It said settlement for the sale of all Retail Notes is expected to be completed by August 1.