Oppenheimer Holdings $125 million term loan hoped as June business

By Sara Rosenberg

New York, June 16 - Oppenheimer Holdings Inc. is targeting a bank meeting sometime in June to launch a proposed $125 million seven-year senior secured term loan, according to a market source.

Morgan Stanley is the lead bank on the deal.

An actual date for the launch has not yet been pinpointed, the source said, but with closing expected to occur in July, the launch won't be too far off.

Oppenheimer has entered into a letter of intent with Canadian Imperial Bank of Commerce to buy back, in full, the first-and second-variable rate exchangeable debentures that were issued as part of the acquisition of CIBC's U.S. Private Client and Asset Management Divisions in 2003.

The company will pay the par value of the debentures, $160.8 million, in cash plus accrued interest.

The repurchase transaction and the term loan are subject to the completion of due diligence, applicable regulatory approvals, delivery of definitive documentation and other customary closing conditions.

Oppenheimer is a Toronto-based provider of financial services.

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