Janus Capital Group Announces Interest Rate Adjustment Covenant in Favor of New and Outstanding Senior Notes

Company Release - 6/6/2007 5:59 PM ET


Janus Capital Group Inc. (NYSE: JNS) announced today that it has agreed to add an interest rate adjustment covenant, as described below, to the terms of the up to $750 million aggregate principal amount of new senior notes that it is currently offering. Janus also announced that subject to the successful completion of the new senior notes offering and in order to treat all of its previously issued and outstanding notes the same as the new senior notes in the event of a change in the debt rating assigned to the company's senior debt, it intends to add the same interest rate adjustment covenant in favor of holders of all of its outstanding:

    -- 5.875% senior notes due September 15, 2011;

    -- 6.119% senior notes due April 15, 2014; and

    -- 7.750% senior notes due June 15, 2009.

The interest rate adjustment covenant will provide that the interest rate payable on the applicable series of notes will increase by 25 basis points for each notch that the company's debt rating is decreased by Moody's from its existing rating of Baa3 or by S&P from its existing rating of BBB-, up to a maximum increase in the interest rate of 200 basis points over the interest rate payable on the notes on the date of their issuance. If at any time the interest rate on the notes has been adjusted upward and subsequently either Moody's or S&P increases its rating of the notes, then for each notch of such increase in the rating the interest rate payable on the applicable series of notes will be decreased by 25 basis points up to the interest rate payable on the notes on the date of their issuance. The interest rate adjustment covenant will permanently fall away (notwithstanding any subsequent decrease in the ratings by either or both rating agencies) if the applicable series of notes become rated Baa2 and BBB or higher by Moody's and S&P, respectively (or one of these ratings if only rated by one rating agency), with a stable or positive outlook.

This press release is for informational purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security.

About Janus Capital Group Inc.

Founded in 1969, Denver-based Janus Capital Group Inc. (Janus) is a recognized leader of growth and risk-managed investment strategies. Our commitment to deliver for investors is rooted in our research-intensive approach and relentless passion to gain a competitive edge.

At the end of March 2007, Janus managed $176.2 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, Tokyo, and Hong Kong. Janus Capital Group consists of Janus Capital Management LLC, Enhanced Investment Technologies, LLC (INTECH) and Capital Group Partners, Inc. (doing business as Rapid Solutions Group). In addition, Janus Capital Group owns 30% of Perkins, Wolf, McDonnell and Company, LLC.

Source: Janus Capital Group Inc.

Contact: Janus Capital Group Inc. Shelley Peterson, 303-316-5625 or James Aber, 303-336-4513