LPL Holdings issues $1.25 billion in senior notes

Published 26/02/2025, 22:50
LPL Holdings issues $1.25 billion in senior notes

LPL Holdings, Inc., a subsidiary of LPL Financial (NASDAQ:LPLA) Holdings Inc. (market capitalization: $27.07 billion), has successfully issued $1.25 billion in senior unsecured notes, as reported in a recent SEC filing. The offering, completed on Tuesday, includes two sets of notes: $750 million of 5.200% notes due in 2030 and $500 million of 5.650% notes maturing in 2035. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score, supported by robust revenue growth of 22.49% over the last twelve months.

The notes were issued under an existing indenture agreement with U.S. Bank Trust Company, National Association serving as trustee. This financial move aims to bolster the company’s financial position by repaying existing debts and providing funds for general corporate purposes. The company’s strong liquidity position is evident in its current ratio of 2.12, with liquid assets well exceeding short-term obligations.

Investors will receive interest payments semi-annually, with the first payment scheduled for September 15, 2025. The 2030 notes offer an interest rate of 5.200% per annum, while the 2035 notes carry an interest rate of 5.650% per annum. The company has outlined specific terms for potential redemption of these notes before their respective maturity dates, with conditions detailed in the supplemental indentures.

The sale of these senior notes was registered with the SEC and is guaranteed by LPL Financial Holdings Inc. The transaction is part of the company’s strategic financial planning and reflects its ongoing efforts to manage its capital structure efficiently.

The details of the senior notes and the associated indenture are available for reference in the exhibits attached to the SEC filing. This strategic financial move by LPL Holdings, Inc. and its parent company is based on information contained in the SEC filing.

In other recent news, LPL Financial reported robust fourth-quarter 2024 earnings, surpassing analyst expectations with an adjusted earnings per share (EPS) of $4.25, compared to the forecasted $3.96. The company also achieved a revenue of $3.51 billion, exceeding the anticipated $3.27 billion. Additionally, LPL Financial announced that its advisory and brokerage assets increased to $1.7 trillion, marking a 9% rise from the previous quarter. This growth was supported by an industry-leading organic asset growth rate of 10%. In terms of strategic moves, LPL Financial successfully onboarded the retail wealth management business of Prudential (LON:PRU) and completed the acquisition of Atria Wealth Solutions, further expanding its advisory network. The firm also welcomed the Lex brothers, Carmen M. Lex Jr. and Chris Lex, who manage approximately $630 million in assets, to its platforms, enhancing its advisory capabilities. Analyst firms have noted LPL Financial’s strong operational execution and strategic investments, which continue to drive its growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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