Man Group Issues €600M of Euro Bonds

February 11, 2010

The publicly trade hedge fund firm, Man Group, issued its first bonds denominated in euros.

The publicly trade hedge fund firm, Man Group plc (“Man”) (UK: EMG.L), issued its first bonds denominated in euros.  The €600 million ($823 million) of five-year notes are the company’s first bonds since 2008 when it raised $250 million.  Prior to this issuance, the company had a total of $950 million of bonds outstanding, some of which come due in 2013.  The proceeds from the euro bonds will provide Man with flexibility for its debt maturities at a time when its revenue stream will be affected by a decline in assets under management.  The company’s assets under management fell from $44 billion as of September 30, 2009 to $42.4 billion at the end of December, a 4% drop.

The euro bonds were priced to yield 345 basis points over the benchmark mid-swap rate.  Credit Suisse, JPMorgan Chase and Royal Bank of Scotland will manage the transaction.

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Hedge Fund Financings, Investment Manager Financings, Transactions