Senior Debt |
Senior debt is comprised of the following as of December 31, 2016 and 2015:
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Outstanding as of |
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Initial |
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Annual |
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December 31, 2016 |
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December 31, 2015 |
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Principal
Amount |
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Maturity
Date |
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Interest
Rate(b) |
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Principal |
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Unamortized
Debt Costs |
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Carrying
Value |
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Principal |
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Unamortized
Debt Costs |
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Carrying
Value |
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Lazard Group 2017
Senior Notes (a) |
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600,000 |
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6/15/17 |
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6.85 |
% |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
98,350 |
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$ |
159 |
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$ |
98,191 |
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Lazard Group 2020
Senior Notes |
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500,000 |
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11/14/20 |
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4.25 |
% |
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500,000 |
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3,569 |
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496,431 |
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500,000 |
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4,491 |
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495,509 |
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Lazard Group 2025
Senior Notes (a) |
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400,000 |
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2/13/25 |
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3.75 |
% |
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400,000 |
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3,833 |
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396,167 |
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400,000 |
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4,342 |
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395,658 |
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Lazard Group 2027
Senior Notes (a) |
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300,000 |
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3/1/27 |
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3.625 |
% |
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300,000 |
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3,998 |
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296,002 |
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- |
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- |
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- |
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Total |
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$ |
1,200,000 |
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$ |
11,400 |
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$ |
1,188,600 |
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$ |
998,350 |
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$ |
8,992 |
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$ |
989,358 |
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(a) |
During November 2016, Lazard Group completed an offering of $300,000 aggregate principal amount of 3.625% senior notes due 2027 (the “2027 Notes”). Interest on the 2027 Notes is payable semi-annually on March 1 and September 1 of each year, beginning March 1, 2017. Lazard Group used a portion of the net proceeds of the 2027 Notes to redeem or otherwise retire all $98,350 of the 6.85% senior notes due June 2017 (the “2017 Notes”), which, including the recognition of unamortized issuance costs, resulted in a loss on debt extinguishment of $3,148. Such loss on debt extinguishment was recorded in “operating expenses—other” on the consolidated statement of operations for the year ended December 31, 2016. |
During February 2015, Lazard Group completed an offering of $400,000 aggregate principal amount of 3.75% senior notes due 2025 (the “2025 Notes”). Interest on the 2025 Notes is payable semi-annually on March 1 and September 1 of each year. Lazard Group used the net proceeds of the 2025 Notes, together with cash on hand, to redeem or otherwise retire $450,000 of the 2017 Notes, which, including the recognition of unamortized issuance costs, resulted in a loss on debt extinguishment of $60,219. Such loss on debt extinguishment was recorded in “operating expenses—other” on the consolidated statement of operations for the year ended December 31, 2015.
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(b) |
The effective interest rates of Lazard Group’s 4.25% senior notes due November 14, 2020 (the “2020 Notes”), the 2025 Notes and the 2027 Notes are 4.43%, 3.87% and 3.76%, respectively. | |
Debt Maturities Relating to Senior Borrowings Outstanding |
Debt maturities relating to senior borrowings outstanding at December 31, 2016 for each of the five years in the period ending December 31, 2021 and thereafter are set forth in the table below.
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Year Ending December 31, |
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2017 |
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$ |
- |
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2018 |
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- |
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2019 |
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- |
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2020 |
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500,000 |
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2021 |
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- |
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Thereafter |
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700,000 |
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Total |
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$ |
1,200,000 |
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