Affiliated Managers amends, restates $1.6 billion of loans

By Wendy Van Sickle

Columbus, Ohio, Oct. 26 – Affiliated Managers Group, Inc. amended and restated its credit agreements on Monday with Bank of America, NA as administrative agent, providing for a $1.25 billion senior unsecured multicurrency revolving credit facility due Oct. 23, 2026 and a $350 million senior unsecured term loan credit facility due Oct. 23, 2026, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreements amend and restate the company’s existing revolver dated Jan. 18, 2019 and existing term credit agreement.

Borrowings under the revolver bear interest at Libor plus a margin that ranges from 75 basis points to 150 bps, and the commitment fee ranges from 7 bps to 15 bps, in each case depending on debt ratings.

Borrowings under the term loan bear interest at Libor plus a margin that ranges from 72.5 bps to 122.5 bps, also depending on ratings.

Subject to some conditions, the revolver may be increased by up to $500 million and the company may borrow up to an additional $75 million under the term loan.

Proceeds under the revolver may be used for working capital and other general corporate purposes, including investments in new and existing affiliates, repayment of senior debt, repurchases of the company’s common stock and the payment of cash dividends on the company’s common stock.

The credit agreements contain financial covenants with respect to leverage and interest coverage.

For the revolver, BofA Securities, Inc., Citizens Bank, NA and Wells Fargo Securities, LLC are joint bookrunners, as well as joint lead arrangers together with Barclays Bank plc, Citigroup Global Markets Inc., Royal Bank of Canada and Morgan Stanley Senior Funding, Inc. Citizens Bank and Wells Fargo are co-syndication agents. JPMorgan Chase Bank, NA, Citigroup, Royal Bank of Canada and Morgan Stanley are co-documentation agents.

Bank of America is the lead arranger for the term loan.

Affiliated Managers is a Prides Crossing, Mass.-based asset management company.

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