Ladenburg plans $75 million at-the-market offering of 8% preferreds

By Marisa Wong

Madison, Wis., May 22 – Ladenburg Thalmann Financial Services Inc. is planning an at-the-market offering for up to $75 million of its 8% series A cumulative redeemable preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

Jefferies LLC and Barrington Research Associates, Inc. are the agents for the offering.

Dividends are payable on the 28th day of each month.

The preferreds are not redeemable until May 24, 2018, except in the case of a change of control.

The redemption price is par of $25.00 plus accrued dividends.

Upon a change of control, holders of the preferreds also have the option to convert their holdings into common stock. The conversion rate is the lesser of par plus accrued dividends divided by the common stock price or 25 shares.

The preferreds are listed on the New York Stock Exchange under the ticker symbol “LTS PrA.” The closing price of the series A preferreds on Thursday was $24.69.

There are currently 14,273,206 of the 8% preferreds outstanding.

Proceeds will be used for general corporate purposes, including the repayment of debt.

Ladenburg is a Miami-based financial services company.

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