Institutional Financial holders put back 99% of 7.625% convertibles

By Toni Weeks

San Diego, May 18 - Institutional Financial Markets, Inc. holders exercised the put option on 99%, or $10.11 million, of its $10.21 million of 7.625% contingent convertible senior notes due 2027, requiring the company to purchase the notes on May 15, according to an 8-K filed with the Securities and Exchange Commission on Friday. The option expired at close of business on May 14.

Under the indenture for the notes, holders may require the company to repurchase in cash all or a portion of their notes at par plus accrued interest on three specific redemption dates, which are May 15, 2012, May 15, 2017 and May 15, 2022. To exercise the option, holders must provide notice to the company during the 30 days prior to each date.

Following the May 15 repurchase, $100,000 principal amount of the notes remain outstanding. The company may redeem the notes for cash in whole or in part from time to time on or after May 20 at a redemption price of par plus accrued interest. The company said it will redeem any notes that remain outstanding after May 20.

The repurchase was funded with cash on hand and borrowings under the company's senior promissory note and security agreement, which was arranged on May 2 with IFMI and subsidiary PrinceRidge Holdings LP.

The Philadelphia-based company, formerly known as Cohen & Co. Inc., is a financial services company specializing in credit-related fixed-income products and investments.

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