Ladenburg Thalmann Financial Services Inc. repurchased 50.9 million of its common shares from its largest shareholder and former chairman, Phillip Frost, and his affiliates.

The stock was purchased at $2.50 per share. The consideration for the transactions comprised $53.9 million in cash and $76.35 million in newly issued 7.25% senior notes due 2028, issued to Frost and his affiliates. Also, all of Frost's 3.61 million stock options were cancelled in exchange for a payment of $3.0 million.

Houlihan Lokey acted as financial adviser to Ladenburg Thalmann.