VICTORY CAP. CL.A DL-,01

Victory Capital offers a broad range of investment strategies and generates revenue mainly from management fees that depend on assets under management. The company relies heavily on acquisitions and partnerships and has takeover plans for First Eagle on its radar. A deal could significantly enlarge Victory Capital and strengthen its position in asset management. » Mere på finanzen.net

S&P Global Ratings has affirmed Victory Capital’s issuer rating at BB but changed the outlook from positive to stable following the announced $7.0 billion takeover of First Eagle Investments. The transaction will be largely debt‑financed (Term‑Loan B $3.5bn, senior secured notes $950m, new equity $2.0bn) and raises pro‑forma assets under management to about $571bn. S&P expects leverage of 3.0–4.0x in the 12 months after closing, warns of a downgrade if leverage exceeds 4.0x, and says sustained net inflows, stable margins and leverage below 3.0x are prerequisites for a possible upgrade. » Mere på de.investing.com

Victory Capital shares climbed intraday by 3.7% to $119.61 and hit a new 52-week high after a definitive agreement to acquire First Eagle Investments for about $7.0 billion was announced. The purchase price includes roughly $4.4 billion in cash, $2.0 billion in new Victory shares and the assumption of $575 million of senior secured notes (maturing 2032). First Eagle manages about $222 billion, which would give the combined company around $571 billion in assets under management and significantly expand Victory’s global value, multi-asset and alternative-credit capabilities. The deal confirms Victory Capital’s acquisition-driven growth strategy and follows strong Q2 results and a well-filled M&A pipeline. » Mere på de.investing.com