AMG Announces Agreement to Sell Mandatory Convertible Securities.Business Editors BOSTON--(BUSINESS WIRE)--Dec. 18, 2001 Affiliated Managers Group, Inc. (NYSE NYSE See: New York Stock Exchange : AMG AMG All Music Guide (music website) AMG All Media Guide (group of media websites) AMG All Movie Guide (Movie website) AMG Arzneimittelgesetz (German Law) ) today announced that it has entered into an agreement to sell $200 million of mandatory convertible securities mandatory convertible security A debt security that automatically converts to another security, generally shares of common stock, on a specified date. ("convertible securities"). Each convertible security is a unit that initially consists of both a forward purchase contract for a specified number of shares of AMG common stock and senior, unsecured notes. The securities were priced at $25 per unit, with a coupon of 6.0 percent and a conversion premium of 15 percent above AMG's closing stock price of $73.10 on December 17, 2001. AMG has granted the initial purchasers an option for up to an additional $30 million of convertible security units to cover over-allotments, if any. The sale was made under AMG's effective shelf registration statement filed with the Securities and Exchange Commission on December 5, 2001. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the sale will be used to repay debt and for other corporate purposes. AMG is an asset management company that acquires and holds majority equity investments in a diverse group of mid-sized investment management firms. Following the recent completion of its investments in Welch & Forbes and Friess Associates, AMG's affiliated investment management firms managed, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, over $75 billion in assets as of September 30, 2001. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Each of the offerings may be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , competition for acquisitions of interests in investment management firms, the investment performance of our Affiliates and their ability to effectively market their investment strategies, and other risks detailed from time to time in AMG's filings with the Securities and Exchange Commission. Reference is hereby made to the "Cautionary Statements" set forth in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000. For more information on Affiliated Managers Group, Inc., please visit AMG's Web site at www.amg.com. |
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