Stilwell Financial of Kansas City, Mo. announced today that it has sold approximately $600 million in 30-year convertible bonds in a private sale.
Stilwell intends to use the proceeds from the sale to finance the purchase of shares of common stock in Janus Capital Corporation of Denver from the chairman, CEO and president of Janus, Thomas H. Bailey.
The bonds, which have a face value of $810 million and were priced at 74.137 cents on the dollar, have a yield of one percent to maturity and are convertible into Stilwell shares at $43.22 under specified conditions. At the close of trading yesterday, shares of Stilwell common stock were trading at $29.30.
On Jan. 26, Stilwell announced it expected to acquire 600,000 shares of Janus common stock from Bailey through the exercise of put rights by Bailey. Then, on March 16, Stilwell acquired an additional 199,042 shares of Janus stock from several minority stockholders, according to Stilwells annual report. Stilwell plans to use the shares for its ' Janus Incentive Plan.' The plan is designed to keep portfolio managers with the company. After the purchase, which is expected to close in May, Stilwell will control over 88 percent of Janus, up from about 83 percent now. Bailey will control just over six percent.