Cowen greenshoe exercise increases convertibles to $120.8 million

By Angela McDaniels

Tacoma, Wash., May 22 – Cowen Group, Inc. said the underwriters of its 5.625% series A cumulative perpetual convertible preferred stock exercised their $15.8 million over-allotment option in full, increasing the size of the issue to $120.8 million from $105 million.

As previously reported, the company priced 105,000 preferreds at $1,000 each with a 17.5% initial conversion premium on May 14.

The Rule 144A deal priced near the midpoint of price talk, which was for a 5.375% to 5.875% yield and a 15% to 20% premium.

The joint bookrunners were 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 entered 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.

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