filecrux
Oct 27, 11:12 AM
$IVZ Is a 12.5% premium worth paying to swap
$1.5B of 5.9% preferred stock for SOFR+1.35% bank debt?
🏢 Invesco, the global asset manager, bought back 1.5M of its 5.9% preferred shares from MassMutual on Oct 26, 2026 at
$1,125 each, about
$1.69B in cash, which is a 12.5% premium to the
$1,000 face value
🏦 It paid with a new
$1.5B unsecured 5-year term loan at SOFR plus 1.35%, drawn in full, and the
$1.69B outlay equals about 13% of its
$12.60B market value at
$28.53 a share at 16:00 ET on October 26, 2026
🏦 In return, about
$88.5M a year of 5.9% non-cumulative preferred dividends on the repurchased shares goes away, replaced by floating interest on
$1.5B at SOFR plus a ratings-based margin, currently 1.35%
📅 Next: MassMutual's pro-rated dividends on the repurchased shares, for September 1, 2026 through closing, are payable on December 1, 2026
Source: SEC 8-K, Oct 27, 2026
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