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February 15, 2012

Raymond James To Sell Common Stock To Pay For Morgan Keegan Deal

Raymond James Financial Inc. will sell 10.5 million shares of common stock to help it fund its $930 million purchase of Morgan Keegan from Regions, which it expects to close in April.

In addition to proceeds from the stock sale, that at its current $34-per-share price would raise about $323 million, Raymond James will pay for Morgan Keegan with cash and the proceeds from an expected public offering of some $600 million of senior debt securities. Tuesday's announced stock sale is being managed by JPMorgan Chase.

The St. Petersburg, Fla.-based financial company also says it has access to a $900 million loan bridge facility that is available to finance a portion of the Morgan Keegan acquisition and related fees, such as the retention package it is offering advisors with $300,000 and up in yearly fees and commissions.

Raymond James has about 5,400 advisors and Morgan Keegan about 1,000.

Raymond James will not receive any of the proceeds from the sale of the shares being sold by the selling security holders. The company has granted the underwriters a 30-day option to purchase up to an additional 1,575,000 shares to cover over allotments, if any.

J.P. Morgan Securities LLC, Citigroup and Raymond James & Associates Inc. acted as joint-book running managers for the offering. BB&T Capital Markets and BNY Mellon Capital Markets LLC acted as co-managers for the offering.

The public offering is being made in a prospectus supplement. Raymond James has filed a registration statement, including a prospectus, with the Securities and Exchange Commission for the offering.

Raymond James Financial's three principal wholly owned broker-dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd., have approximately 5,400 financial advisors serving 2 million accounts. Total client assets are approximately $270 billion, of which approximately $35 billion are managed by the firm's asset management subsidiaries.

 

 

 

Raymond James To Sell Common Stock To Pay For Morgan Keegan Deal

 
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