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Evercore Inc. (NYSE:EVR), a $12 billion market cap investment banking advisory firm, disclosed Thursday that it has entered into a note purchase agreement to issue $250 million in senior notes through a private placement. The company will issue $125 million of 5.17% Series K senior notes due 2030 and $125 million of 5.47% Series L senior notes due 2032. The transaction is expected to close on July 24. According to InvestingPro data, the company appears to be trading near its Fair Value, with strong financial metrics supporting its debt issuance strategy.
According to the company’s statement, interest on the notes will be paid semi-annually in arrears on April 30 and October 30, beginning October 30, 2025. The Series K notes will mature on July 24, 2030, and the Series L notes will mature on July 24, 2032. Interest will accrue from July 24, 2025.
Evercore intends to use a portion of the net proceeds to repay notes maturing within the next twelve months that were issued under previous note purchase agreements. The remaining proceeds will be used for general corporate purposes.
The note purchase agreement includes certain covenants, such as a maximum consolidated leverage ratio of 2.75 to 1.0 as of the last day of any period of four consecutive fiscal quarters, and a minimum consolidated tangible net worth of $325 million as of the last day of any fiscal quarter. The agreement also provides for customary events of default, which could result in the principal, premium, and interest on the notes becoming immediately due and payable if triggered. InvestingPro analysis shows Evercore maintains excellent financial health with an overall score of 3.11 (GREAT), suggesting strong capability to meet these covenant requirements. Get access to detailed financial analysis and 12+ additional ProTips for EVR through the comprehensive Pro Research Report.
This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Evercore reported its first-quarter 2025 earnings, significantly surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $3.49, compared to the forecasted $2.35. The company also noted a 19% year-over-year increase in net revenues, reaching $700 million, driven by strong performance across various business lines and strategic talent acquisition. Despite a slight revenue shortfall, the firm’s robust performance was underpinned by effective cost management and strategic growth initiatives. In another development, Morgan Stanley (NYSE:MS) upgraded Evercore’s stock from Equalweight to Overweight, citing the company’s significant exposure to large-cap deals and its promising Private Capital Advisory business. Evercore’s early entry into this space and investments in talent have positioned it well for future growth, according to Morgan Stanley. Additionally, Evercore announced an expansion of its Chicago office to accommodate a growing team and strengthen its Midwest presence, highlighting increasing client demand. This expansion is part of Evercore’s strategy to build its presence in major financial centers across the Americas, Europe, the Middle East, and Asia.
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