AMG Mandatory Convertible Securities Sale Yields $223 Million in Net Proceeds.Business Editors BOSTON--(BUSINESS WIRE)--Jan. 10, 2002 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 underwriters had exercised their over-allotment option and purchased from AMG additional mandatory convertible security mandatory convertible security A debt security that automatically converts to another security, generally shares of common stock, on a specified date. units, resulting in approximately $29 million in 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). . The units consist of a forward purchase contract for a specified number of shares of AMG common stock and senior, unsecured notes. When combined with the recently completed initial purchase of these units, the exercise of this option resulted in total net proceeds to AMG of approximately $223 million. "The sale of these mandatory convertible securities provides further balance to our capital structure, and the proceeds substantially enhance our capacity to continue making additional new investments," said Darrell W. Crate, Executive Vice President and Chief Financial Officer. "The transaction and its overnight execution evidence AMG's ability to efficiently access a broad range of capital market alternatives." As previously announced, the securities were priced at $25 per unit, with a coupon of 6.0 percent and a threshold appreciation price of $84.065. The Company has used the proceeds to repay existing indebtedness, and will use the balance for general 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. 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 for its recent investments in Welch & Forbes and Friess Associates, AMG's affiliated investment management firms managed over $75 billion in assets as of September 30, 2001. This press release does not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual 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. Certain matters discussed in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Report on 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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