Cohen accept tenders for 85% of subordinated promissory notes

By Jennifer Chiou

New York, Sept. 2 - Cohen & Co. Inc. subsidiary Cohen & Co. Securities, LLC accepted tenders for $8.1 million, or 85%, of the unsecured subordinated promissory notes due June 20, 2013 issued by Cohen Brothers, LLC, according to an 8-K filing with the Securities and Exchange Commission.

The offer expired at 11:59 p.m. ET on Aug. 26. It began on July 29.

The previously outstanding $9.5 million of notes has an annual cash interest rate of 9% and an in-kind annual rate of 3%.

The company was offering 80% of par plus 80% of accrued in-kind interest and 100% of accrued cash interest up to but excluding the payment date, amounting to a total purchase price of $6.8 million.

The tender offer was one of several strategic transactions the company was pursuing in order to enhance long-term liquidity and operating flexibility.

As already reported, these transactions include the sale of Alesco collateral management rights to ATP Management LLC, an affiliate of some investment funds managed by affiliates of Fortress Investment Group LLC; a three-year services agreement related to servicing the Alesco collateral management rights; and a two-year secured credit facility.

Cohen & Co. is a Philadelphia-based investment firm specializing in credit-related fixed-income investments.

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