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Cowen Inc. (COWN) (“Cowen” or the “Company) today announced the closing of the Company’s $300 million first lien term loan credit facility due March 24, 2028 (the “Term Loan”) and a $25 million senior secured revolving credit facility due 2026 (the “Revolving Facility”). Pursuant to the Term Loan, the Company borrowed $300 million of first lien term loans. Pursuant to the Revolving Facility, the lenders have agreed to make available up to $25 million of revolving credit loans and letters of credit to the Company. Amounts outstanding under the Term Loan and the Revolving Facility bear interest at an annual rate equal to, at the option of the Company, either LIBOR (adjusted for reserves) plus a margin of 3.25%, or an alternate base rate plus a margin of 2.25%.
The Company is using a portion of the proceeds from the Term Loan to redeem the currently outstanding $138 million principal amount of its 7.35% senior notes due 2027 (the “2027 Notes”) and the currently outstanding $88.1 million principal amount of its 3.00% Senior Convertible Notes due 2022 (the “Convertible Notes”).
The 2027 Notes will be redeemed on April 23, 2027 (the “2027 Notes Redemption Date”). The redemption of the 2027 Notes is being made pursuant to the terms of the 2027 Notes and the indenture governing the 2027 Notes. Following the redemption of the 2027 Notes, the 2027 Notes will be delisted from NASDAQ. The redemption price for the 2027 Notes will be equal to 100% of the principal amount of the 2027 Notes plus accrued and unpaid interest to, but excluding, the 2027 Notes Redemption Date. Interest on the 2027 Notes will cease to accrue on and after the Redemption Date. The Company has instructed The Bank of New York Mellon (BK), as the trustee for the 2027 Notes, to distribute a Notice of Redemption to all currently registered holders of the 2027 Notes on March 24, 2021. Furthermore, the Company has deposited sufficient funds with The Bank of New York Mellon, as trustee under the indenture governing the 2027 Notes, to satisfy and discharge the 2027 Notes and the indenture governing the 2027 Notes.
The Company is using a portion of the proceeds from the Term Loan to redeem the currently outstanding $138 million principal amount of its 7.35% senior notes due 2027 (the “2027 Notes”) and the currently outstanding $88.1 million principal amount of its 3.00% Senior Convertible Notes due 2022 (the “Convertible Notes”).
The 2027 Notes will be redeemed on April 23, 2027 (the “2027 Notes Redemption Date”). The redemption of the 2027 Notes is being made pursuant to the terms of the 2027 Notes and the indenture governing the 2027 Notes. Following the redemption of the 2027 Notes, the 2027 Notes will be delisted from NASDAQ. The redemption price for the 2027 Notes will be equal to 100% of the principal amount of the 2027 Notes plus accrued and unpaid interest to, but excluding, the 2027 Notes Redemption Date. Interest on the 2027 Notes will cease to accrue on and after the Redemption Date. The Company has instructed The Bank of New York Mellon (BK), as the trustee for the 2027 Notes, to distribute a Notice of Redemption to all currently registered holders of the 2027 Notes on March 24, 2021. Furthermore, the Company has deposited sufficient funds with The Bank of New York Mellon, as trustee under the indenture governing the 2027 Notes, to satisfy and discharge the 2027 Notes and the indenture governing the 2027 Notes.