Cowen Inc. plans to offer certain convertible senior notes due Dec. 15, 2022, to qualified institutional buyers.
The company also expects to grant the initial purchases an option to buy certain additional notes on the same terms and conditions.
The notes will be unsecured senior obligations of the company. Interest is expected to be paid semiannually on June 15 and Dec. 15 of each year, starting June 15, 2018.
Cowen plans to use the net proceeds for general corporate purposes, including repaying or repurchasing part of its outstanding 3.0% cash convertible notes due 2019 and repurchasing up to $25 million of its class A common shares. The company plans to buy back the common shares from purchasers of the notes in privately negotiated transactions expected to close around the same time as the notes' offering closes. The buyback price of the common shares is expected to equal the closing price per share on the date the notes' offering prices.
