Raymond James begins tender offer, consent solicitation for two series of senior notes

By Taylor Fox

New York, March 18 – Raymond James Financial Inc. commenced cash tender offers and consent solicitation for any and all of its $250 million outstanding 5.625% senior notes due 2024 (Cusip: 754730AD1) and $500 million outstanding 3.625% senior notes due 2026 (Cusip: 754730AE9), according to an announcement.

The company is soliciting consents to amend the indentures governing the notes to shorten the minimum notice period for the redemption of the notes.

Holders who tender 2024 notes will receive a total consideration for the notes based on the 2.125% U.S. Treasury rate due March 31, 2024 plus 50 basis points.

Holders who tender 2026 notes will receive a total consideration for the notes based on the 1.625% U.S. Treasury rate due Sept. 30, 2026 plus 35 bps.

Holders who tender notes prior to the early tender deadline of 5 p.m. ET on March 31 will also receive an early tender payment of $30 per $1,000 of notes.

Raymond James will also pay interest.

In order for the proposed amendments to be adopted with respect to the 2024 notes, consents must be received in respect of not less than 66 2/3% of the outstanding 2024 notes and in order for the proposed amendments to the 2026 notes to be adopted, consents must be received for 66 2/3 of the outstanding 2026 notes.

The total consideration of the notes will be priced at 10 a.m. ET on April 1.

The early settlement date is expected for April 2.

The offers and consent solicitations will expire at 11:59 p.m. ET on April 14.

The final settlement date is expected for April 16.

Citigroup Global Markets Inc. (800 831-9146), BofA Securities, Inc. (800 294-1322), J.P. Morgan Securities LLC (212 834-4533) and Raymond James & Associates, Inc. (800 248-8863) are the dealer managers and solicitation agents.

Global Bondholder Services Corp. (866 470-4200, 212 430-3774; contact@gbsc-usa.com) has been retained to serve as both the depositary and the information agent.

Raymond James is a financial services company based in St. Petersburg, Fla.

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