Lazard Announces Total Consideration for Lazard Group LLC’s Cash Tender Offer for Its 3.750% Senior Notes Due 2025

Rhea-AI Summary

Lazard, Inc. (NYSE: LAZ) announces the Total Consideration for its cash tender offer of 3.750% Senior Notes due 2025, urging holders to read the Offer to Purchase and related documents before the Tender Offer's expiration. The Total Consideration per $1,000 principal amount of Notes is $987.80, with accrued interest payable up to the Settlement Date. The Tender Offer is subject to certain conditions and can be extended, amended, or terminated by Lazard Group.

Insights

Financial Analyst

The announcement by Lazard, Inc. regarding the cash tender offer for its 3.750% Senior Notes due 2025 is a strategic financial decision that impacts the company's capital structure and debt profile. The Total Consideration of $987.80 per $1,000 principal amount indicates a price below par, which could suggest that the market expects interest rates to rise or that there is a perceived risk associated with the company or its industry. The fixed spread of 0 basis points over the yield to maturity of the UST Reference Security implies that the offer is closely aligned with current government bond yields, which serve as a benchmark for risk-free rates.

From a financial perspective, this tender offer could be a move by Lazard to reduce its interest expenses or to manage upcoming maturities in a potentially rising interest rate environment. The fact that the offer is made at a price below par could be advantageous for Lazard if the market conditions allow for reissuing debt at lower interest rates in the future. However, for investors, the decision to tender their notes will depend on their assessment of the current interest rate trajectory and alternative investment opportunities.

It is crucial to consider the liquidity position and the potential impact on the company's credit rating. If Lazard is buying back debt to deleverage, this could be viewed positively by credit rating agencies, potentially leading to a credit rating upgrade. However, if the tender offer is funded by additional debt, particularly at higher interest rates, it could strain the company's interest coverage ratios and negatively affect its creditworthiness.

Market Research Analyst

Within the broader context of the financial market, Lazard's tender offer reflects a proactive approach to liability management. The fixed income market closely monitors such offers as they can influence the supply and demand dynamics for similar instruments. The tender offer's acceptance rate will provide insight into investor sentiment regarding Lazard's creditworthiness and the attractiveness of the offer relative to the secondary market pricing.

The timing of the tender offer should also be examined in relation to market trends. If the tender offer coincides with a period of market volatility or tightening monetary policy, it could indicate that Lazard is seizing an opportunity to reduce debt costs before further rate hikes. Conversely, if the market is in a downturn, the offer may be an attempt to preemptively manage risks associated with potential credit downgrades or refinancing challenges.

Furthermore, the tender offer may signal broader industry trends, such as a shift towards more conservative financial management practices or a reaction to regulatory changes affecting the cost of carrying debt. It's important to observe how Lazard's competitors respond to similar market conditions and whether this triggers a wave of similar financial maneuvers across the industry.

Legal Expert

In terms of legal implications, the tender offer must comply with securities regulations and contractual obligations. The offer is subject to specific terms and conditions and any amendments or waivers to these terms could have legal ramifications. The announcement outlines the right of Lazard Group to extend, amend, or terminate the offer, which must be communicated in accordance with the law and could affect investor decisions.

Additionally, the offer is not valid in jurisdictions where it is prohibited and in some areas, it must be made by a licensed broker or dealer. This highlights the importance of adhering to varying regional securities laws, which can influence investor participation and the overall success of the tender offer. The role of the Dealer Managers and the Information Agent is crucial in ensuring that the offer complies with all applicable regulations and that investors receive accurate and timely information.

It is also vital to consider the potential for legal disputes arising from the tender offer process, such as disagreements over the settlement of tendered notes or discrepancies in the payment of accrued interest. The legal framework surrounding the offer must provide clarity and fairness to all parties involved to minimize the risk of litigation.

NEW YORK--(BUSINESS WIRE)-- Lazard, Inc. (NYSE: LAZ) announced today the Total Consideration as set forth in the table below in respect of the previously announced cash tender offer (the “Tender Offer”) of its subsidiary Lazard Group LLC (“Lazard Group”) for any and all of its outstanding 3.750% Senior Notes due February 13, 2025 (the “Notes”).

The Tender Offer is being made upon the terms and conditions in the Offer to Purchase and related Letter of Transmittal dated March 6, 2024. The Tender Offer will expire today at 5:00 p.m. (New York City time), unless extended or terminated as described in the Offer to Purchase (such time and date, as they may be extended, the “Expiration Time”). Holders of the Notes are urged to carefully read the Offer to Purchase and related Letter of Transmittal and Notice of Guaranteed Delivery before making any decision with respect to the Tender Offer.

As previously announced, in order to be eligible to receive the “Total Consideration,” holders must (i) validly tender their Notes on or prior to the Expiration Time or (ii) deliver a properly completed Notice of Guaranteed Delivery and all other required documents at or prior to the Expiration Time and validly tender their Notes at or prior to 5:00 p.m. (New York City time) on the second business day after the Expiration Time pursuant to guaranteed delivery procedures. The Total Consideration for each $1,000 principal amount of Notes validly tendered and not validly withdrawn was determined in the manner described in the Offer to Purchase by reference to the fixed spread over the yield to maturity based on the bid side price of the UST Reference Security listed below, calculated by the Dealer Managers (as defined below) for the Tender Offer as of 2:00 p.m. (New York City time) today, the date on which the Tender Offer is currently scheduled to expire, and is set forth in the table below.

Title of Security

CUSIP/ISIN Nos.

Principal Amount Outstanding

UST Reference Security

Bloomberg Reference Page

Reference Yield

Fixed Spread

Total Consideration(1)

3.750% Senior Notes due 2025

52107QAG0 / US52107QAG01

$400,000,000

2.00% UST due February 15, 2025

FIT3

5.130%

+0 bps

$987.80

(1)

Per $1,000 principal amount of Notes validly tendered and not validly withdrawn pursuant to the Tender Offer.

In addition to the Total Consideration, accrued and unpaid interest up to, but not including, the Settlement Date (as defined below) will be payable in cash on all validly tendered and accepted Notes. Interest will cease to accrue on the Settlement Date for all Notes accepted for purchase in the Tender Offer, including any such Notes tendered through guaranteed delivery procedures. As a result, Notes tendered through the guaranteed delivery procedures will not receive accrued interest from the Settlement Date through the Guaranteed Delivery Settlement Date (as defined below), which is expected to be two business days after the Settlement Date.

Payment for Notes validly tendered in the Tender Offer and accepted by Lazard Group for purchase will be made on the date referred to as the “Settlement Date” or, in the case of Notes tendered through guaranteed delivery procedures, the “Guaranteed Delivery Settlement Date.” The Settlement Date is expected to occur on the next business day following the Expiration Time, and the Guaranteed Delivery Settlement Date is currently expected to occur on the third business day following the Expiration Time.

The closing of the Tender Offer is subject to the satisfaction or waiver of certain conditions as set forth in the Offer to Purchase.

Lazard Group reserves the right, subject to applicable law, to (i) waive any and all conditions to the Tender Offer, (ii) extend the Expiration Time, (iii) amend the Tender Offer in any respect (including, without limitation, to change the fixed spread) or (iv) terminate the Tender Offer on or prior to the Expiration Time and return the Notes tendered pursuant thereto, in each case by giving written or oral notice of such extension, amendment or termination to D.F. King & Co., Inc., the tender agent (in such capacity, the “Tender Agent”).

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The Tender Offer is being made solely by means of the Offer to Purchase and related Letter of Transmittal and Notice of Guaranteed Delivery dated March 6, 2024. The Tender Offer is void in all jurisdictions where it is prohibited. In those jurisdictions where the securities, blue sky or other laws require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of Lazard Group by the Dealer Managers or one or more registered brokers or dealers licensed under the laws of such jurisdictions.

Citigroup Global Markets Inc. is acting as the lead dealer manager and Lazard Frères & Co. LLC is acting as co-dealer manager (together, the “Dealer Managers”) for the Tender Offer. Requests for documents may be directed to D.F. King & Co., Inc., the information agent (in such capacity, the “Information Agent”), by telephone at (212) 269-5550, in writing at Attn: Michael Horthman,, 48 Wall Street, 22nd Floor, New York, New York, 10005 or by email at lazard@dfking.com. Copies of the Offer Documents are also available at the following website: www.dfking.com/lazard. Questions regarding the Tender Offer may be directed to Citigroup Global Markets Inc. by telephone at (800) 558-3745 (toll-free) or (212) 723-6106 (collect) or in writing at Attn: Liability Management Group, 388 Greenwich Street, Trading 4^th Floor, New York, New York 10013. None of Lazard Group or its affiliates, their respective boards of directors, the Dealer Managers, the Tender Agent, the Information Agent or the trustee for the Notes makes any recommendation as to whether holders should tender any of their Notes. Holders must make their own decision as to whether to tender any of their Notes and, if so, the principal amount of their Notes to tender.

About Lazard

Founded in 1848, Lazard is one of the world’s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our reports on Forms 10-Q and 8-K, including the following:

• A decline in general economic conditions or the global or regional financial markets;

• A decline in our revenues, for example due to a decline in overall mergers and acquisitions (“M&A”) activity, our share of the M&A market or our assets under management (“AUM”);

• Losses caused by financial or other problems experienced by third parties;

• Losses due to unidentified or unanticipated risks;

• A lack of liquidity, i.e., ready access to funds, for use in our businesses;

• Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and

• Changes in relevant tax laws, regulations or treaties or an adverse interpretation of these items.

Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

LAZ-CPE

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312193113/en/

Media contact:

Shannon Houston, +1 212 632 6880

shannon.houston@lazard.com

Investor contact:

Alexandra Deignan, +1 212-632-6886

alexandra.deignan@lazard.com

Source: Lazard, Inc.

FAQ

What is the ticker symbol for Lazard, Inc.?

The ticker symbol for Lazard, Inc. is 'LAZ'.

What is the Total Consideration for the cash tender offer of 3.750% Senior Notes due 2025?

The Total Consideration per $1,000 principal amount of Notes is $987.80.

When does the Tender Offer expire?

The Tender Offer expires today at 5:00 p.m. (New York City time), unless extended or terminated.

Who are the Dealer Managers for the Tender Offer?

Citigroup Global Markets Inc. is the lead dealer manager, and Lazard Frères & Co. LLC is the co-dealer manager for the Tender Offer.

Where can one find copies of the Offer Documents?

Copies of the Offer Documents are available at the website: www.dfking.com/lazard.