Affiliated Managers Group Prices Baby Bonds

Asset manager Affiliated Managers Group (NYSE:AMG) has priced their new issue of baby bonds.

The issue will have a maturity date of 3/30/2059 and will have an early redemption period starting 3/30/2024.

The coupon will be 5.875% and the company will sell 11.2 million shares.

The issue is investment grade rated at BBB by S&P and Baa1 by Moodys.

The interest payments are not qualified payments for preferential tax treatment.

The pricing term sheet can be read here.

There is no OTC early trading in this issue.

5 thoughts on “Affiliated Managers Group Prices Baby Bonds”

  1. SteveA, it traded using CUSIP prior to having the MGR symbol. I was following the trades through FINRA prior to acquring MGR symbol. Here is the FINRA bond link:
    http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C814375&symbol=AMG4811066
    Click on Trade History. These were likely the institutional trades. Some of the trades I spotted in “trade history” were as low as 24.62. Hence, it share price seems in the ballpark.
    BTW, I tried and could not buy using CUSIP in my four online brokerage accounts – TDAm, Schwab, Merrill, and Fido. Called Fido’s fixed inc desk and they entered limit order for me at 24.66 and it never triggered. Some transactions executed at share price lower than my limit order. I learned a lesson: not vie while the big boys do their thing. FWIW, I bought today at 24.59, 24.60 and 24.62.

    1. I see some transactions as low as 24.55 page 1 (March 28th) of history at FINRA.

    2. I brought half my position at $24.64. I am holding because I do not understand the low price. AIG BAA3, same coupon 5.85%, was trading today as high as $25.60. AFGB BAA2, same coupon 5.85%. closed today at $24.96.

      This is BAA1, why aren’t their more buyers at this price?

      Any thoughts?

    1. The symbol being used is MGR.

      Note, another board, has said that MGR was a closed preferred from the same company that previously paid 6.375% and was called in.

      Anybody have any thoughts why this is trading down and closed at $ 24.58?

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