JMP Group Announces Full Redemption of 7.25% Senior Notes Due 2027 and Satisfaction and Discharge of Indenture

Rhea-AI Summary

JMP Group LLC (NYSE: JMP) announced its subsidiary's plan to redeem all outstanding $15 million principal amount of its 7.25% Senior Notes due 2027 on September 13, 2021. This follows the redemption terms outlined in the notes' indenture. The redemption price will be $25 plus accrued interest. Sufficient funds have been deposited with the trustee to satisfy these notes, and a Notice of Redemption will be sent to the registered holders. This announcement does not constitute a solicitation of investment or a notice of redemption under the optional provisions of the 2027 Notes.

Positive

• Completion of the redemption will remove $15 million in debt from the balance sheet.
• Redemption of Senior Notes is expected to enhance financial flexibility.

Negative

• Potential reduction in cash reserves due to the redemption payment.
• Investors may perceive the redemption as a signal of financial caution.

JMP Group LLC (NYSE: JMP), an investment banking and alternative asset management firm, announced today that its wholly owned subsidiary, JMP Group Inc., has given notice of its intention to redeem all of the currently outstanding $15.0 million principal amount of its 7.25% Senior Notes due 2027 (CUSIP No. 466273 109; NASDAQ: JMPNL) (the “2027 Notes”) on September 13, 2021 (the “Redemption Date”), following which they will be delisted from The Nasdaq Global Market. The redemption is being made pursuant to the terms of the 2027 Notes and the indenture governing the 2027 Notes. The redemption price per 2027 Note will be $25 plus accrued and unpaid interest up to, but excluding, the Redemption Date. Furthermore, the company has deposited sufficient funds with the trustee under the indenture governing the 2027 Notes, U.S. Bank National Association, to satisfy and discharge the 2027 Notes and the indenture with respect to the 2027 Notes, and the trustee has acknowledged such satisfaction and discharge.

JMP Group Inc. has instructed the trustee to distribute a Notice of Redemption to all currently registered holders of the 2027 Notes on September 13, 2021. Copies of such Notice of Redemption and additional information relating to the procedure for redemption of the 2027 Notes may be obtained from U.S. Bank National Association by calling (800) 934-6802 (toll-free).

This press release does not constitute a notice of redemption under the optional redemption provisions of the 2027 Notes, nor does it constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the expected redemption of the 2027 Notes and the satisfaction and discharge of the indenture governing the 2027 Notes. Forward-looking statements provide JMP Group’s current expectations or forecasts about future events, including beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expected or implied by the forward-looking statements. The company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Form 10-K for the year ended December 31, 2020, as filed with the U.S. Securities and Exchange Commission on March 29, 2021. Such forward-looking statements speak only as of the date of this press release. Unless required by law, JMP Group undertakes no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this press release.

About JMP Group

JMP Group LLC is a diversified capital markets firm that provides investment banking, equity research, and sales and trading services to corporate and institutional clients as well as alternative asset management products and services to institutional and high-net-worth investors. JMP Group conducts its investment banking and research, sales and trading activities through JMP Securities and its venture capital and private capital activities through Harvest Capital Strategies and JMP Asset Management. For more information, visit www.jmpg.com.

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FAQ

What are JMP Group's plans for the 7.25% Senior Notes due 2027?

JMP Group plans to redeem all outstanding 7.25% Senior Notes due 2027 on September 13, 2021.

What is the redemption price for the 2027 Senior Notes?

The redemption price for the 2027 Senior Notes will be $25 plus accrued and unpaid interest.

Why is JMP Group redeeming the 2027 Senior Notes?

The redemption is in accordance with the terms of the indenture governing the 2027 Notes, aimed at improving financial flexibility.

When will the 2027 Senior Notes be delisted from Nasdaq?

The 2027 Senior Notes will be delisted from Nasdaq following their redemption on September 13, 2021.

How will JMP Group notify holders of the 2027 Notes about the redemption?

JMP Group has instructed the trustee to distribute a Notice of Redemption to all registered holders on September 13, 2021.