Raymond James taps $500M in debt funding
March 27, 2020 - Raymond James Financial Inc. (NYSE: RJF) is issuing $500 million in senior notes, with proceeds of the offering to be used for working capital and general corporate purposes. Moody's Investors Service has assigned an investment-grade Baa1 rating to the notes, saying the rating reflects the strength and stability of the company. Financial flexibility is important since the coronavirus pandemic is causing profound economic, societal, operational and other shocks, Moody's said. "The economic and market impact will lead to some deterioration in Raymond James's profitability and debt service metrics over the near term, but Raymond James's diversified revenue streams, flexible cost structure, and low level of debt will allow the firm to quickly recover its pre-tax margin, leverage and coverage," Moody's said. The notes will have an annual interest rate of 4.65 percent and will mature on April 1, 2030, St. Petersburg-based Raymond James said in a news release. The offering is expected to close March 31.