FEDERATED INVESTORS, INC. (NYSE:FII) Files An 8-K Other EventsITEM 8.01 OTHER EVENTS
On April13, 2018, Federated Investors, Inc. (Federated) entered into a foreign currency forward transaction with Citi Bank, N.A. under an existing International Swaps and Derivatives Association, Inc. Master Agreement dated June9, 2010 (Existing ISDA). The Existing ISDA contains customary payment terms, conditions and other terms. Federated entered into the foreign currency forward transaction for the purpose of hedging the foreign exchange currency risk associated with the obligation for its wholly owned subsidiary, Federated Holdings (UK) II Limited (Buyer), to pay in U.K. pounds sterling the cash consideration for the acquisition from BT Pension Scheme (BTPS) of a 60% majority interest in Hermes Fund Managers Limited to that certain Share Sale Agreement, dated April12, 2018, among Federated, BT Pension Scheme Trustees Limited, as trustee for and on behalf of BTPS, Buyer and Federated (Hermes Acquisition).
Under this forward transaction, Federated is committed to purchase £250 million at an all-in forward rate of 1.43192 (which is comprised of a spot rate of 1.42522 plus forward points of 0.0067) for settlement on August1, 2018 in the amount of $358.0 million. The £250 million includes the announced purchase price of £246 million and an estimate of £4 million to compensate BTPS for its share of Hermes’ excess regulatory balance sheet capital at closing. Federated may adjust the actual date of settlement of this forward transaction so that it coincides with the final closing date of the Hermes Acquisition. In the event the settlement date is other than August1, 2018, the final amount paid by Federated could be different (i.e., either higher or lower), due to a change in the forward points.
About FEDERATED INVESTORS, INC. (NYSE:FII)
Federated Investors, Inc. (Federated) is a provider of investment management products and related financial services. The Company is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products, in both domestic and international markets. It operates in one segment, the investment management business. Federated provides investment advisory services to over 120 Federated-sponsored funds (the Federated Funds). It markets these funds to banks, brokers and dealers and other financial intermediaries to meet the needs of their customers and clients, including retail investors, corporations and retirement plans. The Company offers a range of products and strategies, including money market, equity and fixed-income investments.