Ladenburg to sell up to $85 million in at-the-market offering of 8% cumulative preferreds

By Stephanie N. Rotondo

Phoenix, Nov. 21 – Ladenburg Thalmann Financial Services Inc. announced an at-the-market offering for up to $85 million of its 8% series A cumulative redeemable preferred stock on Friday.

There is $271.83 million of the preferreds outstanding.

Jefferies Inc. and Barrington Research Inc. are acting as the sales agents, according to a prospectus filed with the Securities and Exchange Commission.

Dividends are payable on the 28th day of each month.

The preferreds are not redeemable until May 24, 2018, except in the case of a change of control.

The redemption price is par plus accrued dividends.

Upon a change of control, holders of the preferreds also have the option to convert their holdings into common stock. The conversion rate is the lesser of par plus accrued dividends divided by the common stock price or 25 shares.

The preferreds are listed on the New York Stock Exchange under the ticker symbol “LTSPA.”

Proceeds will be used to prepay notes from various lenders, including Phillip Frost affiliate Vector Group Ltd. and an affiliate of Richard J. Lampen, president and chief executive officer. The notes were taken on to finance the company’s acquisition of Securities America.

Any remaining funds will be used for general corporate purposes.

Ladenburg is a Miami-based financial services company.

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