Cowen Group to price $105 million convertible preferreds to yield 5.375%-5.875%, up 15%-20%

By Rebecca Melvin

New York, May 13 – Cowen Group Inc. plans to price $105 million of cumulative perpetual convertible preferred shares after the market close Wednesday that were talked to yield 5.375% to 5.875% with an initial conversion premium of 15% to 20%, according to market sources.

The 105,000 shares of series A convertible preferreds have a $1,000 par value and will be sold under Rule 144A. There is a greenshoe for up to 15,750 of additional shares.

Joint bookrunners are Nomura Securities International, Inc., SunTrust Robinson Humphrey Inc. and Cowen and Co. LLC.

The preferreds are non-callable for five years and then are provisionally callable if the common stock exceeds 150% of the conversion price.

In connection with the pricing of the notes, the company plans to enter into a capped call option transaction with Nomura.

Proceeds will be used to fund the capped call and for general corporate purposes.

New York-based Cowen is a financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.