TPG Inc. (Nasdaq: TPG), a leading global alternative asset management firm based in Fort Worth and San Francisco, announced Monday that it plans to offer senior notes due 2036 through its subsidiary TPG Operating Group II, L.P., in a registered public offering.
The notes will be fully and unconditionally guaranteed by TPG and certain of the issuer’s direct subsidiaries. Proceeds from the sale will be used to pay down a portion of outstanding debt under the company’s revolving credit facility and for general corporate purposes, the firm said.
Senior notes are a type of corporate debt that rank above other unsecured or “junior” debt in terms of repayment priority. In the event of bankruptcy or liquidation, holders of senior notes are repaid before junior creditors and shareholders. Like other bonds, senior notes pay interest over a fixed period and return the principal at maturity — in this case, 2036.
The offering is being managed by Morgan Stanley & Co. LLC, BofA Securities, Inc., and Wells Fargo Securities, LLC, which are serving as joint book-running managers.
The sale will be conducted under an automatic shelf registration statement filed with and approved by the U.S. Securities and Exchange Commission on Feb. 27, 2024. Investors can access the prospectus and related documents through the SEC’s website or by contacting the underwriters.
TPG’s move comes as companies across industries tap debt markets to refinance existing borrowings and maintain liquidity in a higher-interest-rate environment.