Raymond James Announces Pricing of Offering of $1.5 Billion of Senior Notes

Rhea-AI Summary

Raymond James (NYSE: RJF) has announced the pricing of a $1.5 billion senior notes offering in two tranches. The offering consists of $650 million of 4.900% senior notes due 2035 and $850 million of 5.650% senior notes due 2055.

The notes will be issued under Raymond James' effective shelf registration statement, with the offering expected to close on September 11, 2025. The company plans to use the proceeds for general corporate purposes. The offering is being managed by BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, and Raymond James & Associates.

Positive

• Successful pricing of substantial $1.5 billion debt offering indicates strong market confidence
• Long-term debt structure with 10-year and 30-year maturities provides financial flexibility
• Multiple major financial institutions participating as underwriters demonstrates broad market support

Negative

• Additional long-term debt obligations will increase interest expense burden
• Higher interest rates of 4.900% and 5.650% reflect current elevated rate environment

Insights

Financial Analyst

Raymond James' $1.5B senior notes offering strengthens its capital position while securing long-term funding at reasonable fixed rates.

Raymond James has priced a substantial $1.5 billion debt offering split between two long-dated tranches: $650 million of 4.9% senior notes maturing in 2035 and $850 million of 5.65% senior notes maturing in 2055. This strategic debt issuance represents a significant capital-raising event for the financial services firm.

The pricing structure reflects current market conditions, with the longer-dated 2055 notes carrying a 0.75% premium over the 2035 notes, a reasonable term premium given the 20-year extension. Both tranches offer fixed interest rates, which provides Raymond James with predictable debt servicing costs over the long term – particularly valuable in today's uncertain interest rate environment.

While the company states the proceeds will be used for "general corporate purposes," this typically signals potential funding for business expansion, refinancing existing debt, strengthening the balance sheet, or possibly funding share repurchases. The 10-year and 30-year maturity selection indicates Raymond James is focused on extending its debt profile and securing long-term capital.

The involvement of multiple prominent underwriters (BofA Securities, Citigroup, J.P. Morgan, and Raymond James' own broker-dealer arm) suggests strong institutional interest in the offering. This debt raising demonstrates Raymond James' ability to access capital markets efficiently, and the successful pricing reflects investor confidence in the company's long-term financial health.

From a financial structure perspective, this issuance represents a significant commitment to long-term debt financing. The company is effectively locking in current interest rates for decades, suggesting management anticipates rates could potentially move higher or that the certainty of fixed-rate financing outweighs the flexibility of shorter-term debt.

St. Petersburg, Fla., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Raymond James Financial, Inc. (NYSE: RJF) (“Raymond James” or the “Company”) today announced the pricing of a registered underwritten public offering of (i) $650,000,000 aggregate principal amount of 4.900% senior notes due 2035 (the “2035 Notes”) and (ii) $850,000,000 aggregate principal amount of 5.650% senior notes due 2055 (the “2055 Notes” and, together with the 2035 Notes, the “Notes”). The 2035 Notes will bear interest at a rate of 4.900% per annum and will mature on September 11, 2035. The 2055 Notes will bear interest at a rate of 5.650% per annum and will mature on September 11, 2055. The net proceeds of the offering are expected to be used for general corporate purposes. The offering is expected to close on September 11, 2025, subject to customary closing conditions.

The Notes are being offered pursuant to an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus supplement and accompanying prospectus. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from BofA Securities, Inc. by calling toll-free at 1-800-294-1322 or emailing dg.prospectus_requests@bofa.com, Citigroup Global Markets Inc. by calling toll-free at 1-800-831-9146, J.P. Morgan Securities LLC by calling collect at 1-212-834-4533 or Raymond James & Associates, Inc. by calling toll-free at 1-800-248-8863 or emailing prospectus@raymondjames.com. You may also get these documents for free by visiting the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. Total client assets are $1.65 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF.

Forward-Looking Statements

Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning the public offering of the Notes, which includes, but is not limited to, whether the Company will consummate the offering on the proposed terms, or at all, and the expected use of proceeds from the proposed offering. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the SEC from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Media Contact: Steve Hollister
Raymond James
727.567.2824

Investor Contact: Kristina Waugh
Raymond James
727.567.7654

FAQ

What is the size and structure of Raymond James' (RJF) September 2025 senior notes offering?

Raymond James is offering $1.5 billion in senior notes, split between $650 million of 4.900% notes due 2035 and $850 million of 5.650% notes due 2055.

What are the interest rates for Raymond James' (RJF) new senior notes?

The 2035 notes carry an interest rate of 4.900%, while the 2055 notes carry an interest rate of 5.650%.

When will Raymond James' (RJF) September 2025 senior notes offering close?

The senior notes offering is expected to close on September 11, 2025, subject to customary closing conditions.

How will Raymond James (RJF) use the proceeds from the senior notes offering?

Raymond James plans to use the net proceeds from the offering for general corporate purposes.

Which financial institutions are underwriting Raymond James' (RJF) senior notes offering?

The offering is being underwritten by BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, and Raymond James & Associates.