Och-ZiffCapital Management Group LLC entered into a securities purchaseagreement with certain executive managing directors of the company, includingCEO and Chairman Daniel Och.
Under the agreement, the executive managing directors agreedto purchase class A cumulative preferred units in each of , OZ Advisors LP andOZ Advisors II LP in an aggregate amount of up to $400 million. Och willpurchase up to approximately $349 million of the units, and the remainingparties will purchase up to approximately $51 million of the units.
The units will be a new class of nonvoting preferred equityinterests in the operating group entities and will have an aggregateliquidation preference of $1,000, plus accrued and unpaid distributions.
The proceeds from sale are expected to be used to fundpayments in connection with the settlement of the and investigations related to international bribery. The remainder will be used forworking capital and general corporate purposes.
The sale of $250 million of the units is expected to closeOct. 5, with the remainder expected to close in January 2017.