Business Context and Reporting Period
Artisan Partners Asset Management Inc. filed a Form 8-K dated September 23, 2026, reporting that its wholly owned general-partner subsidiary, Artisan Partners Holdings LP, entered into a new revolving credit facility and terminated its prior facility.
Key Financial and Liquidity Matters
- New facility: $150 million five-year revolving credit facility, maturing September 23, 2031.
- Expansion option: Commitments may be increased, subject to conditions, to a maximum aggregate amount of $225 million.
- Borrowings: No outstanding borrowings existed under the new facility as of the filing date.
- Interest rates: Term SOFR or Daily Floating Term SOFR plus 1.25% to 2.00%, or a base rate plus 0.25% to 1.00%, depending on Holdings’ leverage ratio.
- Unused commitment fee: 0.125% to 0.275% annually, based on leverage.
- Guarantees: Artisan Partners Limited Partnership and Grandview Property Partners, LLC guaranteed Holdings’ obligations.
- Financial covenants: Consolidated leverage ratio generally may not exceed 3.00 to 1.00, with a temporary increase to 3.50 to 1.00 after certain qualifying acquisitions; consolidated interest coverage ratio must be at least 4.00 to 1.00.
- The filing does not provide current revenue, profit, cash flow, margin, total debt, or broader liquidity balances.
Material Changes Versus the Prior Comparable Arrangement
- The new facility increased revolving commitments from $100 million to $150 million and extended the stated maturity from August 16, 2027, to September 23, 2031.
- The prior Second Amended and Restated Five-Year Revolving Credit Agreement was terminated in connection with the new facility.
- No borrowings were outstanding under the prior agreement at termination.
Guidance, Outlook, Risks, and Unusual Items
- The filing provides no earnings guidance or operating outlook.
- The Credit Agreement contains customary covenants and events of default, including leverage and interest coverage requirements.
- Interest expense and unused commitment fees will vary with Holdings’ leverage ratio and applicable benchmark rates.
- The facility is subject to customary conditions, and the temporary leverage increase is limited to qualifying acquisitions.
Investor Verification Items
- Review Exhibit 10.1 for the complete borrowing conditions, covenant definitions, events of default, and permitted use of proceeds.
- Verify future filings for borrowings, revolver utilization, interest expense, and compliance with the leverage and interest coverage covenants.
- Assess whether any qualifying acquisition triggers the temporary 3.50-to-1.00 leverage covenant.
- Confirm the impact of benchmark interest-rate movements and Holdings’ leverage ratio on borrowing costs and unused commitment fees.