April 5, 2011

Raymond James Prices Its $250 Million Senior Notes

The 4.25% senior notes, which pay interest twice are year, are due in 2016

Raymond James Financial said Monday that its public offering of $250 million senior notes was priced at roughly 99.8% of principal.

The 4.25% senior notes are due in 2016, and Raymond James will pay interest on them each year on April 15 and Oct. 15, starting this fall.

The company, which has some 5,300 financial advisors, expects to use the proceeds from the offering – which should close on April 11 -- for working capital and general corporate purposes.

Paul Reilly, CEO of Raymond James“This offering will support a number of potential initiatives and further enhance our liquidity position as we execute growth strategies in each of our core businesses,” said CEO Paul Reilly (left) in a press release on Monday. “We learned in 2008 that external credit sources are not always reliable.”

Recently, Raymond James said its advisors boosted their year-over-year monthly results -- or fees and commissions -- by more than 20% in February.   

The company staged its first debt offering in August 2009.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC acted as joint book-running managers for the April 2001 offering. FBR Capital Markets & Co.; Raymond James & Associates, Inc.; and Sandler O’Neill & Partners, L.P., acted as co-managers for the offering.

The company says the current public offering is being made by means of a prospectus supplement. Raymond James filed a registration statement (including a prospectus) with the Securities and Exchange Commission (SEC), which is now available online.

Raymond James will host its national advisor conference in early May in Las Vegas.

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