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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