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Institutional Financial gets tenders for about 39% of convertibles
By Jennifer Chiou
New York, July 20 - Institutional Financial Markets, Inc. announced that holders tendered for exchange $7,621,000, or about 39%, of its $19,506,000 of 7.625% contingent convertible senior notes due 2027.
The company, formerly known as Cohen & Co. Inc., was formed through the merger of Alesco Financial Inc. and Cohen Brothers, LLC. The convertibles were originally issued by Alesco.
For each $1,000 principal amount of old convertibles tendered, eligible holders will receive $1,000 principal amount of a new series of 10.5% contingent convertible senior notes due 2027. The company will also pay accrued interest up to but excluding the settlement date of July 22.
The exchange offer expired at 5 p.m. ET on July 19. It began a month ago.
The company previously said the purpose of the offer was to improve its financial flexibility by extending the first put date.
According to a schedule T-O filed with the Securities and Exchange Commission in June:
• The new convertibles will be putable at par on May 15, 2014, May 15, 2017 and May 15, 2022. The old convertibles are putable on May 15, 2012, May 15, 2017 and May 15, 2022;
• The new convertibles will be callable at par beginning May 20, 2014, compared with May 20, 2012 for the old convertibles; and
• Holders of the new convertibles will be entitled to convert at a decreased conversion price under certain circumstances upon the occurrence of a fundamental change if that change occurs prior to May 15, 2014, compared with May 15, 2012 for the old convertibles.
The exchange agent and information agent was Global Bondholder Services Corp. (banks and brokers call 212 430-3774; others call 866 470-3800).
Institutional Financial Markets is a Philadelphia-based financial services company specializing in credit-related fixed-income investments.
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