Oppenheimer Announces Proposed Senior Secured Notes Offering

Rhea-AI Summary

Oppenheimer Holdings Inc. (OPY) plans to issue $125 million in senior secured notes due 2025 in a private offering exempt from Securities Act registration. The notes will be secured by a first-priority interest in the company's and its subsidiaries' assets. Proceeds will be used to redeem existing 6.75% Senior Secured Notes due July 1, 2022, along with related fees. The offering is contingent upon market conditions. The press release highlights that the notes won't be registered and will only be available to qualified institutional buyers.

Positive

• Announcement of a new offering of $125 million senior secured notes due 2025.
• Proceeds will be used to redeem higher-interest debt (6.75% Senior Secured Notes).

Negative

• The offering is subject to market conditions and may not occur as planned.
• The notes are not registered, limiting their potential market access.

NEW YORK, Sept. 10, 2020 /PRNewswire/ - Oppenheimer Holdings Inc. ("OPY" or "the Company") announced today that it is proposing to issue $125 million aggregate principal amount of senior secured notes due 2025 (the "Notes") in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be guaranteed on a senior secured basis by OPY's subsidiaries, E.A. Viner International Co. and Viner Finance Inc. The Notes will be secured by a first-priority security interest in substantially all of OPY's and the subsidiary guarantors' existing and future tangible and intangible assets.

The Notes will not be registered under the Securities Act or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws. The Notes will be offered in the United States only to qualified institutional buyers under Rule 144A of the Securities Act and outside the United States under Regulation S of the Securities Act.

OPY intends to use the net proceeds from the offering of the Notes, along with cash on hand, to redeem in full its 6.75% Senior Secured Notes due July 1, 2022, and pay all related fees and expenses in relation thereto. The proposed offering of the Notes is subject to market and other conditions, and may not occur as described or at all.

This press release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Company Information

Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. With roots tracing back to 1881, the Company is headquartered in New York and has 93 retail branch offices in the United States and has institutional businesses located in London, Tel Aviv, and Hong Kong.

Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the Company's intention to consummate the proposed offering on the terms described herein and the intended use of proceeds from the offering. The consummation of the offering is subject to market conditions and other factors that are beyond the Company's control. Accordingly, no assurance can be given that the offering will be completed on the contemplated terms or at all and you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, reference is made to factors affecting "Forward-Looking Statements" and "Part 1A – Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the Company's Quarterly Reports on Form 10-Q for the quarter ended March 31, 2020 and the quarter ended June 30, 2020. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

View original content:http://www.prnewswire.com/news-releases/oppenheimer-announces-proposed-senior-secured-notes-offering-301127963.html

SOURCE Oppenheimer Holdings Inc.

FAQ

What is Oppenheimer Holdings' proposed senior secured notes offering?

Oppenheimer Holdings is proposing a $125 million offering of senior secured notes due 2025, which will be secured by its assets.

What will the proceeds from the OPY notes offering be used for?

The proceeds will be used to redeem the existing 6.75% Senior Secured Notes due July 1, 2022.

Are the new OPY notes registered under the Securities Act?

No, the new senior secured notes will not be registered and are offered only to qualified institutional buyers.

When are the senior secured notes due?

The senior secured notes are due in 2025.

What are the conditions for Oppenheimer's notes offering?

The offering is subject to market conditions and may not occur as described.