Cowen Inc. has closed its offering of $135 million of 3.00% convertible senior notes due Dec. 15, 2022.
The closing includes $15 million in additional principal amount of notes issued to the buyers. The company's net proceeds total about $131 million, after deducting discounts and commissions but before offering expenses payable by Cowen.
The notes bear interest at 3.00% per year, paid semiannually on June 15 and Dec. 15 of each year, beginning June 15, 2018. The notes have an initial conversion rate of 57.5540 class A common shares per $1,000 principal amount of notes, equivalent to about $17.38 per common share.
The company plans to use net proceeds for general corporate purposes and to repurchase or repay $115.1 million of Cowen's outstanding 3.0% cash convertible senior notes due 2019 and to repurchase about $19.5 million of common shares from buyers of the notes in private transactions.