Cleary Gottlieb advised the underwriters, led by joint bookrunners Citi and Merrill Lynch & Co., in a $750 million public debt offering by Janus Capital Group which closed on June 14. Janus issued the notes off of a new automatic shelf registration statement in two tranches of $300 million 6.250% notes due 2012 and $450 million 6.700% notes due 2017.
In response to investor demand, Janus agreed to include an interest rate adjustment mechanism in the terms of the notes so that the interest rate payable on the notes will be subject to adjustments from time to time if either Moody’s or S&P downgrades (or subsequently upgrades) the debt rating assigned to the notes. Janus also added a similar provision to its outstanding notes in order to treat the holders of those notes equally.