Invesco Ltd. (IVZ, Financial) has entered into a significant financial agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”) to repurchase $1 billion of its outstanding 5.9% Fixed Rate Non-Cumulative Perpetual Series A Preference Stock. This strategic move is set to occur at a 15% premium to the shares' liquidation preference, showcasing Invesco's commitment to optimizing its capital structure.
The transaction, which is expected to close in May 2025, will be financed through debt, reflecting Invesco's confidence in its financial strategy and market position. Despite this repurchase, MassMutual will remain a substantial shareholder, retaining approximately $3 billion of Invesco's Preferred Stock and holding around 18.2% of the company's common shares outstanding.
This development underscores Invesco's proactive approach in managing its financial resources and enhancing shareholder value. The repurchase agreement is a testament to the company's strategic financial planning and its ongoing relationship with MassMutual.
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