PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

GLG announces pricing of convertible subordinated notes

GLG Partners, the US-listed asset manager, has announced the pricing of its offerings of USD200m aggregate principal amount of its dollar-denominated convertible subordinated notes and

GLG Partners, the US-listed asset manager, has announced the pricing of its offerings of USD200m aggregate principal amount of its dollar-denominated convertible subordinated notes and EUR14.6m aggregate principal amount of its euro-denominated convertible subordinated notes due 2014. 

The offerings are being made to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, in offshore transactions pursuant to Regulation S under the Securities Act and to accredited investors in transactions exempt from registration under the Securities Act. 

The dollar notes and the euro notes will each bear interest at a rate of 5.00 per cent per year and will rank junior in right of payment to all of GLG’s existing and future senior indebtedness. The sale of the notes is expected to close on 15 May 2009, subject to effectiveness of the amendment to the credit agreement, closing of the loan repurchases and other customary closing conditions.  

Noam Gottesman, chairman and co-chief executive of GLG, Emmanuel Roman, co-chief executive, and Pierre Lagrange, senior managing director of GLG Partners, have agreed to purchase collectively USD30,000,000 aggregate principal amount of the dollar notes from the initial purchasers as part of this offering, directly or through certain of their affiliates.

The dollar notes will be convertible, at the option of the holder upon the satisfaction of certain conditions, into shares of GLG’s common stock at an initial conversion rate of 268.8172 shares per USD1,000 principal amount of dollar notes, subject to certain adjustments.  The initial conversion rate is equivalent to a conversion price of approximately USD3.72 per share.  

The euro notes will be convertible, at the option of the holder upon the satisfaction of certain conditions, into shares of GLG’s common stock at an initial conversion rate of 365.1344 shares per EUR1,000 principal amount of euro notes, subject to certain adjustments. The initial conversion rate is equivalent to a conversion price of approximately EUR2.74 per share.  

GLG intends to use the net proceeds from the offering of the notes to acquire a portion of the indebtedness outstanding under GLG’s credit agreement. GLG anticipates that approximately USD285m of USD570m principal amount of loans outstanding under the credit facility will be acquired at 60 per cent of par value, subject to satisfaction of certain closing conditions. Any proceeds not used to acquire its outstanding indebtedness will be used for general corporate purposes to the extent permitted under the credit agreement.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured