June 23 (Bloomberg) -- Legg Mason Inc., the money manager that oversees $686 billion in assets, restructured its debt in a move that will result in costs of $105 million to $110 million.
That charge, to be recorded in July, will be mitigated by more than $10 million in interest-rate savings over the next 12 months and additional benefits over the life of the debt, the Baltimore-based company said today in a statement. Legg Mason priced $650 million of senior notes and retired debt due in 2019.
Chief Executive Officer Joseph Sullivan, who took over last year, is seeking to improve the company’s balance sheet and reverse more than five years of net redemptions. The firm, whose shares have climbed 68 percent in the past year, is retiring debt to take advantage of favorable debt markets, according to the statement.
“These transactions will significantly strengthen Legg Mason’s credit profile by locking in lower rates and longer maturities, creating more certainty around the company’s overall capital structure,” Sullivan said in the statement.