New Issue: Oppenheimer prices $200 million seven-year notes at par to yield 8¾%

By Paul A. Harris

Portland, Ore., April 6 - Oppenheimer Holdings Inc. priced a $200 million issue of seven-year senior secured notes (B2/B+/) at par to yield 8¾% on Wednesday, according to an informed source.

The yield printed at the tight end of the 8¾% to 9% price talk.

Morgan Stanley & Co. Inc. ran the books. Oppenheimer & Co. was the joint lead manager.

The New York City-based financial institution plans to use the proceeds to refinance $22.5 million of its debt outstanding as of Dec. 31, 2010 under the variable-rate secured credit note due July 31, 2013 and under its $100 million variable-rate subordinated note due Jan. 31, 2014.

Issuer:	Oppenheimer Holdings Inc.
Amount:	$200 million
Maturity:	April 15, 2018
Securities:	Senior secured notes
Bookrunner:	Morgan Stanley & Co. Inc.
Joint lead manager:	Oppenheimer & Co.
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Spread:	579 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2014, then callable at 106.563, 104.375, 102.188, par on and after April 15, 2017
Equity clawback:	35% at 108.75 until April 15, 2014
Trade date:	April 6
Settlement date:	April 12
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights
Price talk:	8¾% to 9%
Marketing:	Roadshow

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