Fidelity Investments Sells $700 Million in Long-Term Debt

Fidelity Investments, the second- biggest U.S. mutual-fund company, raised $700 million in senior, unsecured long-term debt.

Fidelity sold $400 million in 20-year bonds paying 4.95 percent interest at an issue price of 99.874, and $300 million in 30-year bonds paying 5.15 percent at an issue price of 99.848, Vincent Loporchio, a spokesman for the Boston-based company, said today in an interview. Proceeds will be used for general corporate purposes including continued investment in existing businesses and potential acquisitions.

Led by Chief Executive Officer Edward C. “Ned” Johnson III, 82, and his daughter Abigail Johnson, 51, Fidelity has lost market share in recent years to rivals including Valley Forge, Pennsylvania-based Vanguard Group Inc., known for its index- based funds, and Pacific Investment Management Co. in Newport Beach, California, home of bond picker Bill Gross. Abigail Johnson became the clear successor to her father in August when she was promoted to president.

Fidelity last tapped the debt market in 2010, Loporchio said.

To contact the reporter on this story: Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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