Ameriprise Financial Issues $750M in Senior Notes Due 2035

Ameriprise Financial Inc. (NYSE:AMP), a leading financial planning and services company with a market capitalization of $51 billion and an impressive "GREAT" financial health rating according to InvestingPro, has successfully issued $750 million in senior notes, the company reported on Monday. The notes, which have a 5.200% interest rate, are set to mature in 2035.

The issuance was conducted under an underwriting agreement dated February 25, 2025, with Goldman Sachs & Co. LLC, Barclays (LON:BARC) Capital Inc., and Wells Fargo (NYSE:WFC) Securities, LLC acting as the representatives of the underwriters. The sale of the notes was based on a prospectus supplement from the same date and is part of a registration statement filed with the Securities and Exchange Commission on February 23, 2024.

The proceeds from the notes are expected to contribute to Ameriprise Financial’s general corporate purposes. The senior notes were offered to investors through a registration statement on Form S-3, which was previously filed and effective.

This financial maneuver comes as part of Ameriprise Financial’s broader strategy to manage its capital and financing needs. The company maintains strong liquidity with a current ratio of 2.6, and its liquid assets exceed short-term obligations. As a Delaware-incorporated company with headquarters in Minneapolis, Minnesota, Ameriprise has a long history of providing investment advice and financial planning services, having raised its dividend for 20 consecutive years. Discover more insights about AMP (OTC:AMLTF)’s financial strength with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The documents related to the notes, including the underwriting agreement, the form of the notes, and the legal opinion of Faegre Drinker Biddle & Reath LLP, have been filed with the SEC and are incorporated by reference into this Form 8-K and the registration statement.

Investors and market watchers will be monitoring the impact of this debt issuance on Ameriprise Financial’s financial structure and future investment activities. With annual revenue of $17.9 billion and strong profitability metrics, the company’s commitment to maintaining a solid balance sheet is reflected in this latest financial activity. InvestingPro analysis suggests the stock is trading close to its Fair Value, with 8 additional exclusive insights available to subscribers.

This article is based on a press release statement filed with the SEC.

In other recent news, Ameriprise Financial reported a strong fourth-quarter performance for 2024, with earnings per share (EPS) of $9.54, surpassing the forecast of $9.17. The company also saw a 13% year-over-year revenue increase, reaching $4.5 billion. Despite these positive earnings results, the stock experienced a decline, reflecting potential investor concerns beyond the quarterly figures. In other developments, Ameriprise Financial announced the appointment of Glynis A. Bryan to its Board of Directors, effective March 1, 2025, bringing her extensive financial expertise to the company. Analyst firms have adjusted their perspectives on Ameriprise Financial, with Keefe, Bruyette & Woods raising the price target to $570 and Piper Sandler increasing their target to $442, though maintaining an Underweight rating. Keefe’s adjustment follows the company’s mixed earnings results, while Piper Sandler highlighted challenges in the Advice & Wealth Management segment. These recent developments underscore Ameriprise Financial’s ongoing strategic initiatives and the varied analyst outlooks on its future performance.

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