BrightSphere to Repurchase 4.1 Million Shares Held by HNA Capital
22 February 2019 - 1:28AM
Business Wire
Accretive Transaction Enhances Existing Share
Repurchase Activity
BrightSphere Investment Group plc (NYSE: BSIG), a global,
diversified multi-Affiliate asset management company, today
announced that it will repurchase 4.1 million shares held by HNA
Capital (“HNA”), at a price of $13.89 per share, the closing price
of BrightSphere’s stock on February 20, 2019. The repurchase will
be completed by February 25, 2019.
Upon completion of the transaction, together with open market
share repurchases initiated in the fourth quarter of 2018 and
continuing to date, BrightSphere has repurchased a total of 10.4
million shares, or 9.8% of shares outstanding, resulting in
accretion of 8.5% to 2018 ENI per share. BrightSphere will continue
to enhance shareholder value through opportunistic share
repurchases, which could result in Paulson & Co. Inc. eventual
ownership to be reduced below 24.95% following completion of its
purchase from HNA.
The repurchase will be conducted under BrightSphere’s current
share repurchase authorization and will be funded with cash on hand
and available debt capacity under the Company’s $350 million
revolving credit facility. Following the repurchase and accounting
for both the previously disclosed earnout payment to Landmark
Partners and the deferred tax asset deed settlement with Old Mutual
plc, the ratio of BrightSphere’s third party borrowings to trailing
twelve months Adjusted EBITDA will increase to approximately 2.1x
based on debt and Adjusted EBITDA as of December 31, 2018.
Additionally, in preparation for additional repurchases, the
Company entered into an agreement with Paulson & Co. Inc. to
preserve the rights under the Shareholder Agreement it will receive
pursuant to its transaction with HNA, which is expected to close in
the first quarter of 2019.
About BrightSphere
BrightSphere is a global, multi-Affiliate asset management
company with approximately $206.3 billion of assets under
management as of December 31, 2018. Its diverse Affiliates offer
leading, alpha generating investment strategies to investors around
the world. BrightSphere’s partnership approach, which includes
equity ownership at the Affiliate level and a profit sharing
relationship between BrightSphere and its Affiliates, aligns the
interests of the Company and its Affiliates to work collaboratively
in accelerating their growth. BrightSphere’s business model
combines the investment talent, entrepreneurialism, focus and
creativity of leading asset management boutiques with the resources
and capabilities of a larger firm. For more information, please
visit the Company’s website at www.bsig.com.
BSIG-201911.1
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version on businesswire.com: https://www.businesswire.com/news/home/20190221005569/en/
Brett Perrymanir@bsig.com(617) 369-7300
BrightSphere Investment (NYSE:BSIG)
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