BALTIMORE, March 7, 2016 /PRNewswire/ -- Legg Mason, Inc. (NYSE: LM) ("Legg Mason") announced today that it priced its underwritten public offering of $250 million of Junior Subordinated Notes due 2056 (the "Junior Subordinated Notes") at a price equal to 100% of par. The offering is expected to close on March 14, 2016, subject to the satisfaction of customary closing conditions.
The Junior Subordinated Notes will bear interest at a fixed rate of 6.375% per year. Subject to our right to defer interest payments, interest for the Junior Subordinated Notes will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on June 15, 2016.
Legg Mason plans to use the net proceeds from the Junior Subordinated Notes offering, together with the proceeds of future financings, to finance the purchase prices for the previously announced acquisitions of Clarion Partners and EnTrust Capital and to pay fees and expenses related to these acquisitions, this offering or any future financing. If either of these acquisitions is not consummated, we will retain broad discretion to use all or any of the net proceeds from this offering for general corporate purposes.
The offering is being made pursuant to an effective registration statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC"). Interested parties should read the prospectus included in such registration statement and the prospectus supplement for the offering and other documents that Legg Mason has filed with the SEC for more complete information about Legg Mason and the offering.
Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. The offering is being made only by means of a base prospectus and accompanying prospectus supplement, copies of which may be obtained by contacting Morgan Stanley & Co. LLC, 180 Varick Street, New York, NY 10014, Attention: Prospectus Department, or by calling 1-866-718-1649 (toll-free); Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222 Broadway, New York, NY 10038, Attention: Prospectus Department, or by calling 1-800-294-1322 (toll-free); Citigroup Global Markets Inc., 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Broadridge Financial Solutions, or by calling 1-800-831-9146 (toll-free); J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York, 10179, Attention: Investment Grade Syndicate Desk, 3rd Floor, or by calling 1-212-834-4533 (collect); or Wells Fargo Securities, LLC, 608 2nd Avenue, South Minneapolis, MN 55402, Attention: WFS Customer Service, or by calling 1-800-645-3751 (toll-free). An electronic copy of the base prospectus and prospectus supplement may also be obtained at no charge at the SEC at http://www.sec.gov.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful.
This release contains forward-looking statements subject to risks, uncertainties and other factors that may cause actual results to differ materially. For a discussion of these risks and uncertainties, see "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Legg Mason's Annual Report on Form 10-K for the fiscal year ended March 31, 2015 and in the Company's quarterly reports on Form 10-Q.
About Legg Mason
Legg Mason is a global asset management firm with $651.5 billion in assets under management as of January 31, 2016. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).
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SOURCE Legg Mason, Inc.