By Susanna Moon
Chicago, June 25 - Ladenburg Thalmann Financial Services Inc. registered to sell up to $75 million, or 3 million more shares, of its 8% series A cumulative redeemable preferred stock in a 424B5 filing with the Securities and Exchange Commission.
The company entered into the sales agreement with Mitsubishi UFJ Securities (USA), Inc. and Barrington Research Associates, Inc. Mitsubishi UFJ, as sales agent, will sell the preferreds from time to time.
Proceeds will be used to prepay up to the remaining $70.3 million under the company's Securities America loan and the remaining proceeds for general corporate purposes.
The liquidation preference is $25.00 per share.
The preferreds are convertible upon a change of control and they are callable at par plus accrued beginning May 24, 2018.
The company priced $115 million of the preferreds on May 21 and underwriters fully exercised their over-allotment option for an additional $17.25 million, or 690,000 shares, on May 31.
The independent brokerage and advisory firm is based in Miami.
| Issuer: | Ladenburg Thalmann Financial Services Inc.
|
| Securities: | Series A cumulative redeemable preferred stock
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| Amount: | Up to $75 million
|
| Shares: | Up to 3 million
|
| Liquidation preference: | $25
|
| Maturity: | Perpetual
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| Dividend: | 8%
|
| Call option: | At par plus accrued dividends beginning May 24, 2018
|
| Agent: | Mitsubishi UFJ Securities (USA) Inc.
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| Listing: | NYSE: LTS PRA
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