By Devika Patel
Knoxville, Tenn., Oct. 11 – Och-Ziff Capital Management Group LLC settled $250 million of its $400 million private placement of preferred units on Oct. 5, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The deal priced on Sept. 29. The remaining $150 million will settle in January 2017, the company said in the filing.
The company is selling preferred units consisting of non-voting preferred equity interests. Distributions will be payable on a cumulative basis at an initial distribution rate of 0% per annum until Feb. 19, 2020, after which the distribution rate will increase in stages to a maximum of 10% per annum after eight years.
The units may be redeemed at prices ranging from par to 105. The company may be forced to redeem the units.
Chief executive officer and chairman of the board of directors Daniel S. Och will invest $349 million.
Proceeds will be used for payments in connection with the settlement of the U.S. Securities and Exchange Commission and the U.S. Department of Justice investigations and for working capital and general corporate purposes.
Och-Ziff is an institutional alternative asset manager based in New York.
| Issuer: | Och-Ziff Capital Management Group LLC
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| Issue: | Preferred units of non-voting preferred equity interests
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| Amount: | $400 million
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| Distributions: | 0% per annum until Feb. 19, 2020, increasing to up to 10% per annum after eight years
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| Call: | Initially 105, from Feb. 19, 2020 at 103, from Feb. 19, 2021 at 101, from Feb. 19, 2022 at par
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| Investor: | Daniel S. Och (for $349 million)
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 5 (for $250 million), January 2017 (for $150 million)
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| Distribution: | Private placement
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