Invesco begins $100 million tender offer for 5.625%, 5.375% notes

By Angela McDaniels

Tacoma, Wash., June 2 - Invesco Ltd. subsidiary Invesco Holding Co. Ltd. (formerly known as Amvescap plc) has begun a modified Dutch auction tender offer for a portion of its $300 million 5.625% notes due 2012, $350 million 5.375% notes due 2013 and $200 million 5.375% notes due 2014, according to a company news release.

The maximum payment in cash to purchase the notes will be $100 million, excluding accrued interest, fees and expenses.

For each $1,000 principal amount of notes, the payment will be determined based on a formula consisting of a base price equal to $920 for the 5.625% notes, $870 for the 5.375% notes due 2013 and $800 for the 5.375% notes due 2014 plus a clearing premium of no more than $50.

In each case, the base price includes an early participation amount of $30 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 15.

The clearing premium will be the lowest single premium at which Invesco will be able to spend $100 million by accepting all tendered notes with bid premiums equal to or lower than the clearing premium.

If the total amount of notes tendered at or below the clearing premium would cause Invesco to spend more than $100 million, holders of the notes tendered at the clearing premium will be subject to proration.

Holders will also receive accrued interest up to but excluding the payment date, which is expected to be June 30.

The tender offer will expire at midnight ET on June 29.

Banc of America Securities LLC (888 292-0700 or 980 388-4603) is the dealer manager, and Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) is the information agent.

Invesco is an Atlanta-based investment management company.

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