GMP to acquire fixed-income boutique Miller Tabak Roberts Securities

By Toni Weeks

San Diego, April 6 - GMP Capital Inc. said in a press release that it has entered into a purchase agreement to acquire Miller Tabak Roberts Securities, LLC, a fixed-income boutique specializing in institutional sales, secondary trading and research in high-yield and distressed debt, convertible bonds, international bonds and investment-grade and asset-backed securities.

"[Miller Tabak Roberts] has built an impressive fixed-income agency business that leverages a distribution platform with extensive buyside relationships in North America and abroad," Harris Fricker, GMP's chief executive officer and president, said in the release.

"We believe that these capabilities, combined with GMP's financial strength, deep sellside relationships and proved product origination capability, will enable us to transform MTR's traditional agency platform into a formidable primary business."

Under the purchase agreement, a subsidiary of GMP has agreed to purchase with cash all of the outstanding equity securities of Miller Tabak Roberts for $33 million, subject to post-closing adjustments. As part of the deal, some key employees of Miller Tabak Roberts will receive common shares of GMP, which will have an aggregate value of $15 million and vest over a four-year period. The sellers will also receive an earn-out amount of up to $11 million.

Commenting on the transaction, Miller Tabak Roberts' co-founders Robert Schoenthal and Joel Miller said, "We are excited about both the expanded opportunities for our employees and the increased product offerings that will be available to MTR's gobal clientele."

Completion of transaction is subject to customary closing conditions and regulatory approval, but is expected to close before the end of GMP's third quarter.

BofA Merrill Lynch is acting as financial advisor to Miller Tabak Roberts; GMP Securities LP is acting as financial advisor to GMP.

GMP Capital is a Toronto-based investment dealer. Miller Tabak Roberts is a New York brokerage firm.

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