FAIRPORT, N.Y.--(BUSINESS WIRE)--Manning & Napier, Inc. (NYSE:MN), (“Manning & Napier” or “the Company”) today provided an update regarding its legacy ownership exchange. Pursuant to the existing exchange agreement established during the Company’s initial public offering, the legacy shareholders, consisting of its founder, management team and certain other employees, have the opportunity to exchange on an annual basis a portion of their interests in Manning & Napier Group, LLC for either cash or shares of the Company’s Class A common stock. This annual process was recently completed, and as a result, legacy shareholders exchanged an aggregate of 2,098,837 Class A units of Manning & Napier Group, LLC for approximately $30.3 million. Subsequent to the exchange, the Class A units were retired. As a result of the exchange, the Company’s ownership interest in Manning & Napier Group, LLC has correspondingly increased.
The price of each Class A unit was $14.45, or the average closing-price of the Class A common stock, for the 15 trading days prior to March 27, 2014, less a 5% discount.
“We believe the best use of our available cash resources is to purchase the units being tendered as part of this current exchange process, while preserving our ability to participate in mergers and acquisitions, fund dividends to our public shareholders and retain a flexible capital structure,” said Patrick Cunningham, Chief Executive Officer of Manning & Napier. “As with last year, the exchange has an accretive impact for our shareholders and demonstrates our continued confidence in the long-term growth potential of Manning & Napier.”
Following the exchange, the Company’s adjusted share count is 87,813,349, which continues to include approximately 16% owned by current members of the management team.
About Manning & Napier, Inc.
Manning & Napier (NYSE: MN) provides a broad range of investment solutions through separately managed accounts, mutual funds, and collective investment trust funds, as well as a variety of consultative services that complement our investment process. Founded in 1970, we offer equity and fixed income portfolios as well as a range of blended asset portfolios, such as life cycle funds, that use a mix of stocks and bonds. We serve a diversified client base of high-net-worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans, endowments and foundations. For many of these clients, our relationship goes beyond investment management and includes customized solutions that address key issues and solve client-specific problems. We are headquartered in Fairport, NY and had 507 employees as of December 31, 2013.
Safe Harbor Statement
This press release and other statements that the Company may make may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect the Company’s current views with respect to, among other things, its operations and financial performance. Words like “believes,” “expects,” “may,” “estimates,” “will,” “should,” “intends,” “plans,” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, are used to identify forward-looking statements, although not all forward-looking statements contain these words. Although the Company believes that it is basing its expectations and beliefs on reasonable assumptions within the bounds of what it currently knows about its business and operations, there can be no assurance that its actual results will not differ materially from what the Company expects or believes. Some of the factors that could cause the Company’s actual results to differ from its expectations or beliefs include, without limitation: changes in securities or financial markets or general economic conditions; a decline in the performance of the Company’s products; client sales and redemption activity; changes of government policy or regulations; and other risks discussed from time to time in the Company’s filings with the Securities and Exchange Commission.