Affiliated Managers amends, restates $1.7 billion of credit facilities

By Sarah Lizee

Olympia, Wash., Jan. 22 – Affiliated Managers Group, Inc. amended and restated its credit agreements on Friday with Bank of America, NA as administrative agent, providing for a $1.25 billion senior unsecured multicurrency revolving credit facility due Jan. 18, 2024 and a $450 million senior unsecured term loan credit facility due Jan. 18, 2023, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreements amend and restate the company’s existing revolving credit agreement dated Sept. 22, 2015 and existing term credit agreement dated Oct. 15, 2018.

Borrowings under the revolver bear interest at Libor plus a margin that ranges from 87.5 basis points to 150 bps, and the commitment fee ranges from 8 bps to 20 bps, in each case depending on debt ratings.

Borrowings under the term loan bear interest at Libor plus a margin that ranges from 75 bps to 125 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 on the closing date were used to refinance debt under the existing revolving credit agreement, and future borrowings 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 Merrill Lynch, Citizens Bank, NA and MUFG Bank, Ltd. are joint bookrunners, as well as joint lead arrangers together with Barclays Bank plc, JPMorgan Chase Bank, NA, Citigroup Global Markets Inc., Royal Bank of Canada and Wells Fargo Bank, NA. Citizens Bank and MUFG are co-syndication agents. Wells Fargo Bank, JPMorgan Chase and Barclays 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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