Artisan Partners Asset Management Inc.APAM

Artisan Partners Asset Management Inc. Debt Disclosure

10-KFiled Feb 20, 20263 min read
Note 5. Borrowings
Artisan’s borrowings consist of the following as of December 31, 2025 and 2024:
Maturity (1)
Outstanding Balance at December 31, 2025
Outstanding Balance at December 31, 2024
Interest Rate Per Annum
Revolving credit agreementAugust 2027$— $— NA
Senior notes
Series DAugust 2025— 60,000 4.29 %
Series EAugust 202750,000 50,000 4.53 %
Series FAugust 203290,000 90,000 3.10 %
Series GAugust 203050,000 — 5.43 %
Total gross borrowings190,000 200,000 
Debt issuance costs(860)(570)
Total borrowings$189,140 $199,430 
(1) The Company is not required to make principal payments on any of the outstanding obligations prior to contractual maturity.
The fair value of borrowings was approximately $180.3 million and $182.5 million as of December 31, 2025 and 2024, respectively. Fair value was determined based on future cash flows, discounted to present value using current market interest rates. The inputs are categorized as Level 2 in the fair value hierarchy, as defined in Note 4, “Fair Value Measurements”.
On August 15, 2025, Artisan Partners Holdings LP issued $50 million of 5.43% Series G Senior Notes and used the proceeds, along with cash on hand, to repay the $60 million of 4.29% Series D Senior Notes that matured on August 16, 2025. The Company incurred debt issuance costs of $0.5 million related to the notes which are amortized as interest expense over the life of the instrument.
The financial covenants contained in the note purchase agreement for the Series G Senior Notes are the same as the covenants contained in the Company’s note purchase agreements for the Series E and Series F Senior Notes.
The fixed interest rate on each series of unsecured notes is subject to a one percentage point increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received.
Revolving credit agreement - Artisan Partners Holdings maintains a $100.0 million revolving credit facility that matures in August 2027. Any loans outstanding under the revolving credit agreement bear interest at a rate per annum equal to, at the Company’s election, (i) adjusted Term SOFR plus an applicable margin ranging from 1.25% to 2.25%, depending on Holdings’ leverage ratio (as defined in the revolving credit agreement) or (ii) an alternate base rate equal to the highest of (a) Citibank, N.A.’s prime rate, (b) the federal funds effective rate plus 0.50% and (c) the adjusted Term SOFR for a one-month interest period plus 1.00%, plus, in each case, an applicable margin ranging from 0.25% to 1.25%, depending on Holdings’ leverage ratio. Unused commitments will bear interest at a rate that ranges from 0.15% to 0.45%, depending on Holdings’ leverage ratio.

As of and for the year-ended December 31, 2025, there were no borrowings outstanding under the $100.0 million revolving credit agreement and the interest rate on the unused commitment was 0.15%.
The unsecured notes and the revolving credit agreement contain certain restrictive financial covenants including a limitation on the leverage ratio of Holdings and a minimum interest coverage ratio. The Company was in compliance with all debt covenants as of December 31, 2025.
Interest expense incurred on the unsecured notes and revolving credit agreement was $7.8 million for each of the years ended December 31, 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 25, 2025
2023Feb 22, 2024
2022Feb 27, 2023
2021Feb 22, 2022
2020Feb 23, 2021
2019Feb 18, 2020
2018Feb 20, 2019
2017Feb 21, 2018
2016Feb 21, 2017
2015Feb 25, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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