Invesco repurchases $1.5 billion in preferred shares with five-year floating-rate loan
Key Facts
Invesco announced results for the third quarter ended September 30, 2026, on October 27, and said it had repurchased $1.5 billion in Class A preferred shares held by MassMutual the previous day. The company financed the transaction with a five-year floating-rate bank loan of the same amount, according to the earnings release published via PR Newswire. The deal pairs the repurchase of preferred shares with new bank financing, with the loan amount equal to the value of the shares repurchased. The available evidence does not confirm that Fitch downgraded Invesco’s outlook, so the decision cannot be attributed to the agency. Nor does the evidence establish that the transaction led to a change in the company’s rating or credit outlook.
According to the company, it had repurchased about $3 billion in preferred shares from MassMutual over 18 months following the latest transaction. It said $1 billion of those shares remained outstanding as of October 27. The figures show the scale of cumulative repurchases, alongside a remaining preferred-share commitment to MassMutual. The latest repurchase was financed with a floating-rate loan maturing in five years, outlining the transaction’s financing method and term as disclosed by Invesco. The company’s release, among the facts available here, does not explain the transaction’s effect on its credit rating.
In its asset-management business, Invesco recorded net long-term inflows of $35.1 billion in the third quarter, down from $45.1 billion in the second quarter but above the $28.9 billion recorded in the third quarter of 2025. Chief Executive Andrew Schlossberg said the quarter marked the company’s thirteenth consecutive period of net long-term inflows. The quarterly comparison puts flows below the previous quarter’s level, while the year-on-year comparison shows a higher level than in the corresponding period. These flows provide context for part of the company’s performance during the quarter in which it announced the preferred-share repurchase. The release, among the facts available, did not specify the reasons for the difference in flows between the periods.
Invesco ended the quarter with $2,537.8 billion in assets under management as of September 30, up 2.7% from the previous quarter and 19.4% year over year. It reported diluted earnings per share of $0.65 under GAAP and adjusted diluted earnings per share of $0.72. The quarter’s results thus combined quarterly and annual growth in assets under management with two different earnings-per-share figures, depending on the measure used. The company also reported net debt of $315.8 million at the end of September, compared with $708.6 million on June 30. The decline in net debt compares the ends of the two quarters, alongside the recording of the new loan to finance the repurchase on October 26, after the quarter ended.
Fitch affirmed Invesco’s long-term rating at A with a stable outlook in June 2026, and also affirmed the rating on $4 billion of preferred shares at BBB+. This represents the latest rating status confirmed by the available facts before the announcement of third-quarter results. However, the evidence does not confirm any subsequent change to the stable outlook, or include a statement linking the rating to the repurchase plan or floating-rate loan. Invesco shares, listed under the ticker IVZ, closed at $28.53 on October 26, according to EL7 data. The data do not provide verified figures for the stock’s session high or low.
Regarding upcoming payments, Invesco declared a regular cash dividend of $0.215 per share. The dividend is payable on December 2, 2026, to shareholders of record on November 13. The announcement gives shareholders a specific date as part of the third-quarter results disclosure, following the announcement of the preferred-share repurchase on October 26. These dates and amounts remain the details disclosed for the cash dividend in the available facts.