Boston Private Financial buys back $107.5 million 3% contingent convertibles

By Angela McDaniels

Tacoma, Wash., March 26 - Boston Private Financial Holdings, Inc. repurchased $107.5 million of its $250 million 3% contingent convertible senior notes due 2027, according to an 8-K filing with the Securities and Exchange Commission.

The company said it repurchased the notes through several privately negotiated transactions on March 24 and March 25.

The repurchases were funded with cash received from the repayment of intercompany loans that Boston Private Financial made to some of its affiliate banks with proceeds from the original issuance of the notes. The banks replaced the intercompany loans with funding sources that have a lower interest rate and, as a result, Boston Private Financial said it expects to reduce interest expense, increase the net interest margin and see an after-tax gain of about $7.9 million.

The company may repurchase more of the notes from time to time, depending on market conditions and liquidity, according to the SEC filing.

Boston Private Financial is a Boston-based provider of private banking, wealth advisory and investment management services.

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