SAN FRANCISCO & FORT WORTH, Texas - TPG Inc. (NASDAQ:TPG), a global alternative asset management firm, announced its intention to offer senior notes due 2034 and junior subordinated notes due 2064, subject to market conditions. These offerings, facilitated by TPG Operating Group II, L.P., an indirect subsidiary, aim to generate funds for repaying part of TPG's current debt under its credit facilities and for other corporate purposes.
The senior and junior subordinated notes will be guaranteed by TPG and some of its direct subsidiaries. Additionally, the underwriters of the junior subordinated notes will have a 30-day option to address over-allotments, if necessary.
The offerings are not interdependent and are being conducted as separate public offerings through different prospectus supplements, part of an automatic shelf registration statement filed with the SEC on February 27, 2024, which became effective upon filing.
BofA Securities, Morgan Stanley, Wells Fargo Securities, Goldman Sachs, J.P. Morgan Securities, and TPG Capital BD are managing the senior notes offering. For the junior subordinated notes, the joint book-running managers are Morgan Stanley, BofA Securities, UBS Securities, Wells Fargo Securities, and Goldman Sachs.
TPG, founded in 1992, manages $222 billion in assets and employs a diversified investment strategy that spans private equity, impact, credit, real estate, and market solutions.
This news article is based on a press release statement from TPG Inc.
InvestingPro Insights
TPG Inc. (NASDAQ:TPG), while making strategic moves to manage its debt, is also a subject of interest in the financial markets due to its recent performance and analysts' expectations. The firm's market capitalization stands at a robust $15.7 billion, reflecting investor confidence and the scale of its operations. A noteworthy InvestingPro Tip is that TPG is expected to experience net income growth this year, signaling potential for increased profitability and financial health.
Investors are keeping a close eye on TPG's valuation metrics, with the company trading at a P/E ratio of 188.99. However, when adjusted for the last twelve months as of Q4 2023, the P/E ratio becomes more grounded at 67.43. This adjustment indicates a more nuanced understanding of the company's earnings over time. Additionally, TPG's PEG ratio, which stands at 0.63 for the same period, suggests that the company's earnings growth rate may be undervalued relative to its peers.
Despite concerns about sales decline in the current year, TPG has shown a strong return over the last three months, with a price total return of 27.64%. This robust short-term performance is complemented by the fact that TPG's liquid assets exceed its short-term obligations, as per another InvestingPro Tip, providing the firm with a solid liquidity position to meet its immediate financial needs.
For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 13 more tips available on TPG's profile at InvestingPro, which can be accessed with a subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, giving you valuable insights to inform your investment decisions.
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