Legg Mason Inc., a Baltimore-based money manager, obtained $1 billion of bank loans used in part to pay off borrowings under its revolving credit line.
The new debt consists of a $500 million term loan and $500 million revolver, both of which mature in June 2017, according to a regulatory filing today.
Citigroup Inc., Bank of New York Mellon and State Street Bank and Trust Co. are among banks providing the credit, the filing shows.
Legg Mason used proceeds from the term portion to pay down the outstanding $500 million balance under its previous revolver, the company said in the filing. The new revolving credit line will be used for working capital and general corporate needs.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.