By Lisa Kerner
Charlotte, N.C., Jan. 19 - Waddell & Reed Financial, Inc. closed the sale of $190 million of senior notes and used the proceeds to repay in full the outstanding amounts owed under its 5.6% senior notes due Jan. 15, 2011, according to a form 8-K filing with the Securities and Exchange Commission.
The company announced the note purchase agreement in August.
The existing 5.6% notes had an initial principal amount of $200 million. Waddell & Reed repurchased $10 million of the notes in 2010, resulting in a total principal amount of $190 million being repaid at maturity, the filing said.
As previously reported, the new notes are comprised of $95 million of 5% notes, series A, due Jan. 13, 2018 and $95 million of 5.75% notes, series B, due Jan. 13, 2021.
The notes have a make-whole call at Treasuries plus 50 basis points.
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 included 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 notes
|
| Amount: | $190 million
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Pricing date: | Aug. 31
|
| Settlement: | Jan. 13
|
| Distribution: | Private placement
|
|
|
| Series A
|
| 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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