GLG Partners, the US-listed asset manager, has announced that the offering of its dollar-denominated convertible subordinated notes due 2014 has been increased to USD214m aggregate prin
GLG Partners, the US-listed asset manager, has announced that the offering of its dollar-denominated convertible subordinated notes due 2014 has been increased to USD214m aggregate principal amount.
In light of market demand, it has also decided to eliminate its offering of its euro-denominated convertible subordinated notes due 2014.
GLG has granted the initial purchasers of the dollar notes an option to purchase up to an additional USD15m aggregate principal amount of the dollar notes. The notes will 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 dollar 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 (pictured), co-chief executive, and Pierre Lagrange, senior managing director of GLG Partners, have agreed to purchase collectively USD30m 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.
GLG intends to use the net proceeds from the offering of the dollar 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.