Invesco Ltd.IVZ
Invesco Ltd. Debt Disclosure
DEBT
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The issuer of the senior notes, Invesco Finance PLC, and the issuer of the Term Loan Agreements, Invesco Finance, Inc., are 100% owned indirect subsidiaries of the Parent. The Parent fully and unconditionally guarantees the senior notes and the Term Loan Agreements.
The disclosures below include details of the company's debt. Debt of CIP is detailed in Note 18, “Consolidated Investment Products.”
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Carrying Value (4) | Fair Value | Carrying Value (4) | Fair Value | |||||||||||||||||||
$2.5 billion Revolving Credit Agreement expiring May 16, 2030 (1) | $ | 437.7 | $ | 437.7 | $ | — | $ | — | |||||||||||||||
Unsecured senior notes (2): | |||||||||||||||||||||||
$500.0 million 3.750% - due January 15, 2026 | 499.9 | 499.5 | 499.3 | 494.5 | |||||||||||||||||||
$400.0 million 5.375% - due November 30, 2043 | 391.6 | 385.8 | 391.3 | 391.7 | |||||||||||||||||||
Term Loan Agreement: (3) | |||||||||||||||||||||||
$500.0 million - due May 16, 2030 | 495.9 | 497.2 | — | — | |||||||||||||||||||
| Debt | $ | 1,825.1 | $ | 1,820.2 | $ | 890.6 | $ | 886.2 | |||||||||||||||
(1)On May 16, 2025, Invesco Ltd. and its indirect subsidiary, Invesco Finance PLC, amended and restated the $2.0 billion floating rate Revolving Credit Agreement, increasing the agreement’s borrowing capacity to $2.5 billion and extending the expiration date from April 26, 2028 to May 16, 2030.
(2)The company's senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.
(3)On May 16, 2025, Invesco Ltd. and its indirect subsidiary, Invesco Finance, Inc., entered into two $500.0 million Term Loan Agreements expiring on May 16, 2028 and 2030, respectively. The three-year Term Loan Agreement due on May 16, 2028 was repaid in full as of October 31, 2025.
(4)The difference between the principal amounts and the carrying values of the debt in the table above reflects the unamortized debt issuance costs and discounts.
The fair market values of the company's senior notes and Term Loan Agreement were determined by market quotes provided by a third-party pricing service, which utilizes Level 2 valuation inputs. In the absence of an active market, the company relies upon the average price quoted by brokers for determining the fair market value of the debt.
At December 31, 2025, the outstanding balance on the Revolving Credit Agreement was $437.7 million. Borrowings under the Revolving Credit Agreement will bear interest at (i) Secured Overnight Financing rate (SOFR) plus a 0.10% adjustment (Adjusted SOFR) for specified interest periods or (ii) a floating base rate (based upon the highest of (a) the Bank of America prime rate, (b) the Federal Funds rate plus 0.50%, (c) Adjusted SOFR for an interest period of one month plus 1.00%, and (d) 1.00%), plus, in either case, an applicable margin determined with reference to the higher of the available credit ratings of the Parent or its indirect subsidiary, Invesco Finance PLC. Based on credit ratings of the Parent as of December 31, 2025, the applicable margin for SOFR-based loans was 1.00% and for base rate loans was 0.00%. In addition, the company is required to pay the lenders a commitment fee, quarterly in arrears, based on the actual daily amount of the unused commitments of the lenders multiplied by the applicable percentage determined with reference to the higher of the available credit ratings of the Parent or its indirect subsidiary, Invesco Finance PLC. Based on credit ratings as of December 31, 2025, the commitment fee as of such quarter was equal to 0.10%.
The Term Loan Agreement bears interest at (i) Adjusted SOFR for specified interest periods or (ii) a floating base rate (based upon the highest of (a) the Bank of America prime rate, (b), the Federal Funds rate plus 0.50%, (c) Adjusted SOFR for an interest period of one month plus 1.00%, and (d) 1.00%), plus, in either case, an applicable margin determined with reference to the higher of the available credit ratings of the Parent or its indirect subsidiary, Invesco Finance PLC. Based on the credit ratings of the Parent as of December 31, 2025, the applicable margin for SOFR-based loans was 1.250% and for base rate loans was 0.250%. During the occurrence and continuance of an event of default, the interest rate increases by an additional 2.00% per annum.
The Credit Agreements contain customary restrictive covenants on the company and its subsidiaries. Restrictive covenants in the Credit Agreements include, but are not limited to, limitations on: creating, incurring or assuming liens; entering into merger arrangements; selling, leasing, transferring or otherwise disposing of assets; making a material change in the nature of the
business; making a significant accounting policy change in certain situations; entering into transactions with affiliates; and incurring indebtedness through the subsidiaries (other than the Revolving Credit Agreement borrower or the Term Loan Agreement borrower). Many of these restrictions are subject to certain minimum thresholds and exceptions. Financial covenants under the Credit Agreements include: (i) the quarterly maintenance of an Adjusted debt/Covenant Adjusted EBITDA leverage ratio, as defined in the Credit Agreements, of not greater than 3.25:1.00, and (ii) an interest coverage ratio (Covenant Adjusted EBITDA, as defined in the Credit Agreements, divided by interest expense for the four consecutive fiscal quarters ended on or immediately prior to the date of determination) of not less than 4.00:1.00. The company is in compliance with all restrictive debt covenants as of December 31, 2025.
The Credit Agreements also contain customary provisions regarding events of default which could result in an acceleration or increase in amounts due, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain judgments, ERISA matters, cross-default to other debt agreements, governmental action prohibiting or restricting the company or its subsidiaries in a manner that has a material adverse effect, and failure of certain guaranty obligations.
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.