By Lisa Kerner
Charlotte, N.C., Sept. 7 - Waddell & Reed Financial, Inc. entered into a note purchase agreement on Aug. 31 for the sale of $190 million of unsecured senior notes on or about Jan. 13.
The notes are comprised of $95 million of 5% senior notes, series A, due Jan. 13, 2018 and $95 million of 5.75% senior notes, series B, due Jan. 13, 2021, according to a form 8-K filing with the Securities and Exchange Commission.
There is no scheduled amortization of the notes, the filing said.
The make-whole call is at Treasuries plus 50 basis points.
Proceeds will be used to repay in full the outstanding amounts owed under Waddell & Reed's existing 5.6% senior notes at their scheduled maturity in January 2011 and for general corporate purposes.
The existing notes had an initial principal amount of $200 million, of which $10 million was repurchased by the company in 2010. The total principal amount outstanding is $190 million.
Under the Aug. 31 note purchase agreement, Waddell & Reed may not permit its consolidated leverage ratio to equal or exceed 3 to 1 or its consolidated interest coverage ratio to equal or be less than 4 to 1 during specified periods.
Purchasers include Metropolitan Life Insurance Co., MetLife Investors Insurance Co., MetLife Insurance Co. of Connecticut, Midland National Life Insurance Co., North American Co. for Life and Health Insurance, Security Benefit Life Insurance Co., Wilton Reassurance Co., Genworth Life & Annuity Insurance Co. Genworth Life Insurance Co., John Hancock Life Insurance Co. (USA), John Hancock Life Insurance Co. of New York, JPMorgan Chase Bank, Northwestern Mutual Life Insurance Co., Knights of Columbus, Union Central Life Insurance Co., Acacia Life Insurance Co. and Ameritas Life Insurance Corp.
Waddell & Reed is an Overland Park, Kan.-based financial planning company
| Issuer: | Waddell & Reed Financial, Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $190 million
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Pricing date: | Aug. 31
|
| Settlement: | On or about Jan. 13
|
| Distribution: | Private placement
|
|
|
| Series A
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| Amount: | $95 million
|
| Maturity: | Jan. 13, 2018
|
| Coupon: | 5%
|
|
|
| Series B
|
| Amount: | $95 million
|
| Maturity: | Jan. 13, 2021
|
| Coupon: | 5.75%
|
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