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Janus Henderson closes five-year $200 million revolving facility
By Marisa Wong and Wendy Van Sickle
Morgantown, W.Va., May 30 – Henderson Group plc entered into a five-year $200 million unsecured multicurrency revolving credit facility on Feb. 16 with Bank of America Merrill Lynch International Ltd. as bookrunner, lead arranger and agent. The revolving credit facility became effective on Tuesday, the closing date of Henderson’s merger with Denver-based Janus Capital Group Inc., according to an 8-K filing with the Securities and Exchange Commission.
Under the credit agreement, newly formed Janus Henderson Group plc may request an increase to the overall amount of the revolver of up to $50 million.
The revolver is guaranteed by Janus Capital, but only as long as Janus Capital’s 4.875% notes due 2025 and its 0.75% convertible notes due 2018 are outstanding.
The facility matures on Feb. 16, 2022, subject to two one-year extension options.
Borrowings bear interest at Libor (or Euribor) plus a spread based on Janus Henderson’s credit rating (or Janus Capital’s rating, prior to closing of the merger). The spread ranges from 40 basis points to 90 bps. The spread was initially 63.33 bps. There is also a commitment fee equal to 35% of the applicable Libor margin.
Janus Henderson may be required to prepay any borrowings upon a change of control. It may also voluntarily prepay any borrowings without premium or penalty.
In addition, the credit facility contains a financial covenant. The financing leverage ratio cannot exceed 3.0 times EBITDA.
Also upon closing of the merger on Tuesday, Janus Capital terminated its $200 million five-year unsecured revolving credit facility with JPMorgan Chase Bank, NA as administrative agent, according to another 8-K filing with the SEC.
There were no borrowings outstanding under the JPMorgan credit facility, which was originally entered into on Nov. 25, 2013.
The combined investment group is based in London.
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