Legg Mason Prices $400 Mln Senior Notes Offering

(RTTNews) - Legg Mason, Inc. (LM) said Thursday that it has priced its underwritten public offering of $400 million aggregate principal amount of 5.625% senior notes due 2044 at a price equal to 98.435% of par, to yield 5.735%. 

The company plans to use the net proceeds of about $389 million, after deducting underwriting discounts and offering expenses, plus cash on hand to repay all outstanding borrowings under its bank term loan. 

The offering is expected to close on January 22.

Although, at current interest rates, the company will incur additional interest expense of about $15 million per year as a result of the refinancing, the offering allows Legg Mason to lock in long term debt capital at historically low interest rates.