New Issue: LaBranche $104 million mandatory convertible at 6.75% yield, up 20%

By Ronda Fears

Nashville, Tenn., Feb. 5 - LaBranche & Co. DECS Trust IX sold $104 million of three-year mandatory convertibles at par of 31.58 to yield 6.75% with a 20% initial conversion premium.

The DECS (debt exchangeable convertible securities) convert into LaBranche shares that have been pledged by current and former managing directors of the company, which is a leading brokerage on the New York Stock Exchange.

Salomon Smith Barney was lead manager of the registered deal, which sold at the rich end of yield guidance and the midpoint of premium talk.

Terms of the new deal are:

Issuer: LaBranche & Co. DECS Trust IX

Amount: $104 million

Greenshoe: $20 million

Lead Manager: Salomon Smith Barney

Co-managers: ABN Amro and Jefferies

Maturity Date: Feb. 15, 2005

Dividend: 6.75%

Issue Price: par, $31.58

Yield: 6.75%

Conversion Premium: 20%

Conversion Price: $31.58/$37.896

Conversion Ratio: 1.0/0.833

Call: non-callable

Settlement Date: Feb. 8

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