...Partial Early Redemption of Preferred Stock: On April 22, 2025, Invesco Ltd.'s (Invesco, or the firm) announced its plan to redeem $1 billion of its $4 billion outstanding perpetual series A preferred stock. This transaction, which includes a $150 million early redemption premium, is expected to be financed with $1 billion in unsecured bank term debt consisting of a $500 million three-year tranche and a $500 million five-year tranche, along with incremental funds drawn from Invesco's revolving credit facility. Increase in Leverage; Plausible Deleverage Path: Due to the early preferred stock redemption being debt funded, Fitch Ratings expects Invesco's leverage (gross debt to fee-related EBITDA [FEBITDA]) to increase to 1.35x on a pro forma basis from 0.6x at 1Q25. While pro forma leverage is expected to remain above Fitch's downgrade trigger of 1x for the coming quarters, Invesco will likely be able to reduce leverage below 1.0x relatively quickly, supported by solid FEBITDA generation...
