Nasdaq OMX Group swaps shares for $119.6 million 3.75% convertibles

By Devika Patel

Knoxville, Tenn., Oct. 1 - Nasdaq OMX Group, Inc. said it has entered into an agreement with Silver Lake to convert the Nasdaq Stock Market LLC's 3.75% series A convertible notes into Nasdaq OMX common stock.

All $119.6 million of the notes, which are held by the Silver Lake funds and one additional individual, were converted into about 8.2 million Nasdaq OMX shares.

In return, Nasdaq OMX paid about $9.8 million in cash, which includes about $800,000 of accrued interest payments through Sept.30, to the noteholders. The investors also received $16 million of Nasdaq OMX series A convertible preferred stock.

"Silver Lake is a valued, long-term shareholder and we are pleased to have their support as we execute on our stated goal of reducing our outstanding debt obligations," Nasdaq OMX chief financial officer Adena Friedman said in a press release.

"This transaction is the most recent action taken that has enabled us to reduce total debt obligations by about $450 million this year alone."

Based in New York, Nasdaq OMX is a holding company operating Nasdaq Stock Market LLC as its wholly owned subsidiary.

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