AMG Announces Sale of $500 Million of Convertible Securities and Share Repurchase.BOSTON -- 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) ) announced that it has entered into an agreement to sell $500 million of convertible trust preferred securities due 2037. The securities carry a coupon of 5.15% per annum Per annum Yearly. and a conversion price of $200, which is a premium of approximately 53% over AMG's closing stock price of $130.77 on October 11, 2007. AMG will use a portion of 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). from this offering to repurchase up to 2.0 million shares of its common stock, and expects to use the remainder for general corporate purposes. The offering will be made only to qualified institutional buyers pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. of the Securities Act of 1933, as amended (the "Securities Act"). The securities will not be registered under the Securities Act, and may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release, which is being issued pursuant to and in accordance with Rule 135c of the Securities Act, shall not constitute an offer to sell or the solicitation of an offer to buy the convertible trust preferred securities. AMG is an asset management company that acquires and holds majority equity investments in a diverse group of boutique investment management firms. AMG's affiliated investment management firms managed approximately $267 billion in assets as of June 30, 2007. 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 ability to complete pending acquisitions, 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, 2006. For more information on Affiliated Managers Group, Inc., please visit AMG's Web site at www.amg.com. |
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