By Rebecca Melvin
New York, May 14 – Cowen Group Inc. priced $105 million of perpetual convertible preferred shares, or 105,000 shares at $1,000 each, to yield 5.625% with a 17.5% initial conversion premium, according to a news release.
The Rule 144A deal priced near the midpoint of price talk, which was for a 5.375% to 5.875% yield and a 15% to 20% premium.
There is a greenshoe for up to 15,750 of additional shares of the series A convertible preferreds.
Joint bookrunners were Nomura Securities International, Inc., SunTrust Robinson Humphrey Inc. and Cowen and Co. LLC.
The preferreds are non-callable for five years and then are provisionally callable if the common stock exceeds 150% of the conversion price.
In connection with the pricing of the notes, the company entered into a capped call option transaction with Nomura.
Proceeds will be used to fund the capped call and for general corporate purposes.
New York-based Cowen is a financial services company.
| Issuer: | Cowen Group Inc.
|
| Issue: | Perpetual convertible preferred shares
|
| Amount: | $105 million, or 105,000 shares at $1,000 each
|
| Greenshoe: | $15.75 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Nomura Securities International, Inc., SunTrust Robinson Humphrey Inc., Cowen and Co. LLC
|
| Dividend: | 5.625%
|
| Price: | Par
|
| Liquidation preference: | $1,000
|
| Yield: | 5.625%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $6.57
|
| Conversion ratio: | 152.2476 shares
|
| Call: | Non-callable until May 20, 2020, then provisionally callable subject to 150% price hurdle
|
| Pricing date: | May 13
|
| Settlement date: | May 19
|
| Price talk: | 5.375%-5.875%, up 15%-20%
|
| Stock symbol: | Nasdaq: COWN
|
| Stock reference price: | $5.59, at close May 13
|
| Distribution: | Rule 144A
|
| Market capitalization: | $1.22 billion
|
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