OPPENHEIMER HOLDINGS INC. ANNOUNCES REDEMPTION OF $113 MILLION OF 5.50% SENIOR SECURED NOTES DUE 2025

Rhea-AI Summary

Oppenheimer Holdings Inc. (OPY) has announced the redemption of $113,050,000 of its 5.50% Senior Secured Notes due 2025. The redemption is scheduled for October 10, 2024, at a price equal to 100.00% of the principal amount plus accrued and unpaid interest. This move will result in the complete redemption of all outstanding Notes.

Chairman and CEO Albert G. Lowenthal stated that the company's recent financial results and strong balance sheet enable this debt redemption, which will reduce interest expenses during a period of high interest rates. He also affirmed that Oppenheimer can raise additional capital in the future as needed to support business growth.

Positive

• Full redemption of $113,050,000 in Senior Secured Notes
• Reduction in interest expenses
• Strong financial results and balance sheet reported
• Ability to raise additional capital for future growth

Negative

• None.

Insights

Financial Analyst

Oppenheimer's decision to redeem $113 million of its 5.50% Senior Secured Notes is a strategic move that showcases the company's financial strength. This action will reduce interest expenses, particularly beneficial in the current high-interest rate environment. The redemption at 100% of principal value, without premium, indicates favorable market conditions for Oppenheimer. Key implications:

• Improved cash flow: Lower interest payments will boost free cash flow.
• Enhanced financial flexibility: Debt reduction provides more room for future growth initiatives.
• Positive market signal: Demonstrates confidence in the company's financial position and future prospects.

However, investors should note that while this move strengthens the balance sheet, it may slightly reduce the company's liquidity position in the short term.

Market Research Analyst

This debt redemption aligns with broader market trends where financially robust companies are optimizing their capital structures. Market implications:

• Potential stock price boost: Debt reduction often positively impacts investor sentiment.
• Sector competitiveness: Improved financial position may enhance Oppenheimer's standing among peers in the financial services industry.
• Future growth capacity: With reduced debt burden, the company is better positioned to pursue strategic opportunities in a dynamic market.

Investors should watch for potential shifts in Oppenheimer's growth strategy and any subsequent capital raising activities, as hinted by CEO Lowenthal's statement about future capital needs.

NEW YORK, Sept. 19, 2024 /PRNewswire/ - Oppenheimer Holdings Inc. (the "Company" or "Oppenheimer") today announced that it has delivered to the holders of its 5.50% Senior Secured Notes due 2025 (the "Notes"), a notice of redemption, notifying such holders of the Company's intent to redeem on October 10, 2024 (the "Redemption Date") $113,050,000 aggregate principal amount of the outstanding Notes at a redemption price equal to 100.00% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest thereon to the Redemption Date. Upon completion of the redemption, all of the Notes will be redeemed and none will remain outstanding.

Albert G. Lowenthal, Chairman and CEO of the Company stated "Oppenheimer's recent financial results and strong balance sheet enable the Company to redeem its outstanding public debt and reduce interest expense in a period of high interest rates. The Company can and will raise additional capital as necessary in the future to continue to grow its business."

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 88 retail branch offices in the United States and institutional businesses located in London, Tel Aviv, and Hong Kong.

Forward-Looking Statements

This press release includes certain "forward-looking statements" relating to anticipated future performance. For a discussion of the factors that could cause future performance to be different than anticipated, reference is made to "Factors Affecting 'Forward-Looking Statements'" and "Part 1A – Risk Factors" in Oppenheimer's Annual Report on Form 10-K for the year ended December 31, 2023.

 

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SOURCE Oppenheimer Holdings Inc.

FAQ

What is the amount of Oppenheimer Holdings' (OPY) Senior Secured Notes being redeemed?

Oppenheimer Holdings Inc. (OPY) is redeeming $113,050,000 aggregate principal amount of its 5.50% Senior Secured Notes due 2025.

When is the redemption date for Oppenheimer Holdings' (OPY) Senior Secured Notes?

The redemption date for Oppenheimer Holdings' (OPY) Senior Secured Notes is October 10, 2024.

What is the redemption price for Oppenheimer Holdings' (OPY) Senior Secured Notes?

The redemption price is 100.00% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to the Redemption Date.

How will the redemption of Senior Secured Notes affect Oppenheimer Holdings (OPY)?

The redemption will reduce Oppenheimer Holdings' (OPY) interest expenses during a period of high interest rates and demonstrate the company's strong financial position and balance sheet.