EXHIBIT 99.4
Media Contact: Kekst & Co. STILWELL
Robert Siegfried (212-521-4832) FINANCIAL INC.
Michael Herley (212-521-4897)
920 Main Street, 21st Floor
Kansas City, Missouri 64105
STILWELL FINANCIAL INC. RECEIVES
$675 MILLION PROCEEDS FROM COMPLETED
ZERO-COUPON CONVERTIBLE NOTES OFFERING AND COMPLETES
PURCHASE OF JANUS SHARES
Assets Under Management Total $229 Billion
(Page 1)
{News Release}
Investors Contact: NYSE Symbol: SV
Landon H. Rowland (816-218-2416)
Chairman, President and CEO
Douglas E. Pittman (816-218-2415) Release No. 2001-14 May 1, 2001
Manager of Investor Relations
Kansas City, Missouri
Stilwell Financial Inc. ("Stilwell" or the "Company") today announced that
it had received approximately $675 million in net proceeds upon the closing of
the sale of approximately $931 million principal amount at maturity of
zero-coupon convertible senior notes due 2031 ("convertible notes"). The total
received includes approximately $88 million from the exercise of an
over-allotment option by the underwriter, Merrill Lynch & Co.
The convertible notes, which were offered to qualified institutional buyers
only, carry a yield to maturity of 1% per year and a conversion premium of
47.5%. Each of the $1,000 principal amount convertible notes is convertible into
17.1544 shares of Stilwell common stock and is redeemable for cash at Stilwell's
option on or after April 30, 2006 at its accreted value. In addition, Stilwell
may be required to repurchase the convertible notes - using either cash or
shares of Stilwell common stock at Stilwell's option - at the accreted value
thereof, at the option of the holders on April 30th of 2002, 2004, 2006, 2011,
2016, 2021 and 2026.
Stilwell used approximately $610 million of the offering proceeds to
purchase 600,000 shares of Janus Capital Corporation ("Janus") common stock from
Thomas H. Bailey, Janus's Chairman, President and Chief Executive Officer. With
the closing of this transaction, Stilwell's ownership stake in Janus has
increased to approximately 90.2%. Mr. Bailey continues to hold approximately
6.2% of the Janus common stock and more than 150 other Janus employees own
approximately 3.6% (which will decline to approximately 2.2% after completion of
the pending repurchase of shares by Janus).
The remaining $65 million in net proceeds received from the convertible
notes will be used for general corporate purposes.
Landon H. Rowland, Stilwell's Chairman, President and Chief Executive
Officer, commented: "We are pleased to have successfully completed the
zero-coupon convertible debt transaction. The terms of the financing were
excellent and the response to the offering by the institutional community was
very favorable, evidenced by the exercise of the maximum amount of the greenshoe
by Merrill."
Rowland added, "With the purchase of the 600,000 shares of Janus common
stock behind us, we can focus on the opportunities that are abundant in this
market, confident in our abilities to act judiciously and decisively."
Assets Under Management
Stilwell also reported that preliminary assets under management as of the
close of market on April 30, 2001 totaled approximately $229 billion.
Preliminary average assets under management for the month ended April 30, 2001
were approximately $215 billion. For the four months ended April 30, 2001,
preliminary average assets under management were approximately $239 billion.
Stilwell is a diversified, global financial services company with
operations through its subsidiaries and affiliates in North America, Europe and
Asia. The primary entities comprising Stilwell are Janus Capital Corporation, an
approximately 90.2% owned subsidiary; Berger LLC, of which Stilwell owns 100% of
the preferred limited liability company interests and approximately 86% of the
regular limited liability company interests; Nelson Money Managers Plc, an 80%
owned subsidiary; and DST Systems, Inc., an equity investment in which Stilwell
holds an approximate 33% interest.
* * * * * * * * * *
This press release includes statements concerning potential future events
involving the Company, which could materially differ from the events that
actually occur. The differences could be caused by a number of factors including
those factors identified in Stilwell's Registration Statement on Form 10 dated
June 15, 2000 and Stilwell's Annual Report on Form 10-K for the year ended
December 31, 2000, both on file with the Securities and Exchange Commission
(Commission file no. 001-15253). The Company will not update any forward-looking
statements in this press release to reflect future events or developments.
............. The End