Inside today’s 424B5 filing, Affiliated Managers Group, Inc. (NYSE:AMG), discloses it entered into an initial forward sale agreement with an affiliate of Deutsche Bank AG (NYSE:DB), under which, AMG, an asset management company providing investment management services to institutional clients and high net worth individuals in the U.S., will have the option to sell shares of its common stock.
The new agreement is with Deutsche Bank’s investment banking arm, Deutsche Bank Securities Inc, which will act as the underwriter on the issuance of securities in connection with the offering, and as a result will receive an effective per share commission of 1.75% of the volume-weighted average PPS.
The number of shares that may be sold, said the filing, will be in the AMG’s discretion, but in no event will they have an aggregate sales price in excess of $200,000,000.
The company said intends to use the net proceeds from the offering for funding potential investments in new investment management firms and for other general corporate purposes.
On July 29, AMG reported its financial and operating results for the second quarter and six months ended June 30, 2009. The co., whose market cap currently stands at $2.7B, reported Q2 EPS of $1.00, compared to $1.49 for the same period of 2008. Revenue for the quarter was $201.2 million, compared to $309.0 million for the same period of 2008. Net Income came in at $11.0 million, compared to $34.6 million y/y basis.
For the six months ended June 30, 2009, Cash Net Income was $80.1 million compare to ’08’s $120.3 million, while EBITDA was $102.4 million vs $176.9 million in 2008.
Net client cash flows for the 2Q of 2009 were approximately $(1.6) billion. AMG’s aggregate assets under management were approximately $178.7 billion at June 30, 2009.