Putnam's Pre-Reynolds Restructuring is Two-Thirds Complete
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Thursday, August 06, 2009

Putnam's Pre-Reynolds Restructuring is Two-Thirds Complete

More than two-thirds of Putnam's restructuring program is complete. On Thursday Putnam's parent, Great-West Lifeco, revealed that, of C$184 million (now $171.02 million in US currency) allocated in 2007 for restructuring its then-recently-acquired US asset manager, only C$60 million ($55.77 million US) remains to be spent. Meanwhile, CEO Bob Reynolds has amped up Putnam's credit line.

Spokespeople for Great-West and Putnam were not immediately able to comment on the restructuring costs or on Putnam's new credit line.

In the first half of 2009, Great-West has spent an additional C$15 million ($13.94 million US) on restructuring-related compensation costs at Putnam, under a program that apparently predates Reynolds' tenure at the firm. Of the remaining restructuring funds, C$18 million ($16.73 million US) are earmarked for further compensation costs, C$11 million ($10.22 million US) for exiting and consolidating operations and C$31 million ($28.81 million US) for eliminating duplicate systems.

Reynolds also replaced Putnam's C$200 million (then $173.21 million in US currency) revolving credit facility agreement on June 22, setting a new, C$500 million (then $433.01 US) one with an unnamed Canadian bank. Putnam's already tapped C$270 million (then $233.83 million US) of that new line.

Putnam spokeswoman Laura McNamara confirmed that Putnam worked with a total of $102.8 billion US on June 30, down slightly from $106 billion on December 31.

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