Franklin Resources Issues $750M 5.50% Unsecured Notes Due 2036

What Happened

• Franklin Resources, Inc. announced on August 10, 2026 that it completed an underwritten public offering of $750,000,000 aggregate principal amount of 5.500% Notes due 2036.
• The Notes were issued under the company’s Form S-3 registration statement and were sold pursuant to an underwriting agreement dated August 5, 2026. The Notes bear interest at 5.500% per year, payable semi‑annually beginning February 10, 2027, and mature on August 10, 2036.
• The Notes are unsecured and subordinated obligations of the company and were issued pursuant to the company’s 2020 indenture, with The Bank of New York Mellon Trust Company, N.A. named as trustee.

Key Details

• Amount issued: $750,000,000 of 5.500% Notes due August 10, 2036.
• Use of proceeds: company intends to use net proceeds to repay approximately $700,000,000 of outstanding revolving borrowings under its credit agreement (without permanently reducing commitments) and for general corporate purposes.
• Redemption terms: notes callable prior to May 10, 2036 (the Par Call Date) at a make‑whole price (Treasury rate + 15 bps discounted) or 100% of principal, and callable on/after the Par Call Date at 100% of principal plus accrued interest.
• Transaction parties: underwriting representatives were BofA Securities, HSBC Securities (USA) and Wells Fargo Securities; Indenture dated Oct 6, 2020, supplemented by an officer’s certificate dated Aug 10, 2026.

Why It Matters

• This transaction creates a direct financial obligation of $750M for Franklin Resources and changes the company’s debt profile by replacing about $700M of short‑term revolver borrowings with long‑term fixed‑rate debt maturing in 2036.
• For investors, the issuance increases long‑term leverage but locks in a fixed 5.50% interest cost through maturity and reduces near‑term reliance on the revolver. The notes being unsecured and subordinated are behind any secured debt in priority.