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MIAMI--(BUSINESS WIRE)-- Ladenburg Thalmann Financial Services Inc. (LTS) announced today that it repurchased 50.9 million shares of its common stock from its largest shareholder, Dr. Phillip Frost, and his affiliates. In addition, all of Dr. Frost’s 3.61 million stock options were cancelled in exchange for a payment of $3.0 million.
The stock was purchased at a price of $2.50 per share. The consideration for the transactions consisted of $53.9 million in cash and $76.35 million in newly-issued 7.25% senior notes due 2028 issued to Dr. Frost and his affiliates.
Houlihan Lokey acted as financial advisor to the Company.
Also, LTS's $40M revolving credit pact with Frost's Frost Gamma Investment Trust was terminated as of Dec. 24, 2018; at the time of termination, no outstanding amounts were owed by the company under the credit agreement.