By Devika Patel
Knoxville, Tenn., Jan. 31 - Legg Mason, Inc. settled a $1.25 billion private placement of 2.5% convertible senior notes. The notes were sold to an affiliate of Kohlberg Kravis Roberts & Co. in a deal which was announced Jan. 14.
The non-voting notes mature in 2015. They have a conversion price of $88.00 per share. Legg Mason has entered into hedging deals to increase the effective conversion price to $107.46 per share.
Given certain conditions, the notes are convertible into cash up to $1.25 billion. In that case, any excess conversion value will be converted into cash or shares, at Legg Mason's option.
Some of the proceeds will be used to retire preferred stock that is convertible into 2.5 million common shares of Legg Mason. The rest will be used for general corporate purposes, including business initiatives such as future acquisitions.
Legg Mason is a financial management company based in Baltimore.
| Issuer: | Legg Mason, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $1.25 billion
|
| Maturity: | 2015
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion price: | $88.00
|
| Investor: | Kohlberg Kravis Roberts & Co. affiliate
|
| Announcement date: | Jan. 14
|
| Settlement date: | Jan. 31
|
| Symbol: | NYSE: LM
|
| Stock price: | $72.36 at close Jan. 14
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
