Envestnet is refinancing some debt coming due within six months.
On Friday, the asset management and financial technology provider closed an offering of $575 million in unsecured convertible notes, which have a 2.625% annual interest rate and will mature on Dec. 1, 2027. The interest is payable semiannually.
Envestnet plans to use a significant portion of the proceeds to repurchase the outstanding principal of previous issued convertible notes, including $312.4 million on outstanding 1.75% notes due in 2023. Another $181.8 million will go toward 0.75% convertible notes due in 2025.
Additional proceeds will be used to enter in capped call transactions and for “general corporate purchases,” according to a statement.
Envestnet did not respond to a request for comment.
The company initially offered $350 million in convertible notes on Monday before upping the amount to $500 million Tuesday. The proceeds closed Friday include the full exercise of the $75 million option to purchase additional notes granted by Envestnet to initial purchasers, according to a company statement.
Also on Tuesday, Impactive Capital, a $2.7 billion hedge fund with a 7.2% ownership stake in Envestnet, issued a press release detailing its dissatisfaction with Envestnet’s stock performance. The company said that under the tenure of chairman James Fox, Envestnet’s stock has underperformed the S&P 500 Index by 124%.
The company also requested a seat on Envestnet’s board of directors to have some say over the direction of the company.
“We write today because we are exceedingly troubled by the Company’s long-term underperformance, lack of shareholder alignment, poor Board governance, and disingenuous shareholder engagement,” Impactive’s letter states. “Absent the appointment of an Impactive representative to the Board, we see no choice but to consider nominating a slate of directors at the next annual meeting of shareholders to replace long-standing directors who must be held accountable for the Company’s subpar performance.”
In a statement, an Envestnet spokesperson said ““The Envestnet Board of Directors and management team are focused on creating value for shareholders by executing our strategy to accelerate growth, and we will continue to take actions to achieve these objectives. As always, we welcome input from our investors with the common goal of driving shareholder value.”
Shares of Envestnet stock ended the week up 7.75%, according to Google Finance.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
Whichever path you go down, act now while you're still in control.
Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
