By Devika Patel
Knoxville, Tenn., May 7 – Cowen Inc. completed its private placement of $53 million of 7.25% senior notes due May 6, 2024 on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.
The deal priced for $45 million on April 25.
The interest rate is subject to increase if the investment-grade rating of the notes decreases.
The company may, at its option, prepay the notes in whole or in part upon the payment of the greater of par and a make-whole amount.
Upon a change of control, the company must offer to prepay the notes at 101% of par.
The note purchase agreements contain covenants that, among other things, (a) limit the ability of the company to incur certain debt and declare or pay any cash dividend or cash distribution on its common stock unless certain conditions are satisfied and (b) require the company and its subsidiaries (on a consolidated basis) to maintain enough cash funds to make interest payments on the outstanding notes for one and a half years and regular quarterly cash dividend payments on its outstanding convertible preferred stock for one and a half years.
Cowen is a New York City-based investment brokerage firm.
| Issuer: | Cowen Inc.
|
| Issue: | Senior notes
|
| Amount: | $53 million
|
| Maturity date: | May 6, 2024
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Call option: | In whole or in part upon the payment of the greater of par and a make-whole amount
|
| Put option: | At 101% of par upon a change of control
|
| Trade date: | April 25
|
| Settlement date: | May 7
|
| Distribution: | Private placement
|
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