LaBranche’s board of directors has approved a redemption of all its remaining outstanding 11% senior notes due 2012, in the aggregate principal amount of $189.3m, at the current redemption price of 102.75% plus accrued and unpaid interest thereon, pursuant to the optional redemption provisions of the indenture governing the notes.
Board of directors also intends to increase share repurchase authorization from the approximately $23.4m remaining under the current authorization to $100m upon completion of the transaction with Barclays.
According to LaBranche, the transactions will increase flexibility in managing operations and, fetch significant capital and liquidity resources to run its businesses. The transactions will also allow the company to further streamline and reorganize its remaining businesses to create more efficiencies and reduce fixed costs.
LaBranche will continue to focus on its market-making operations in ETFs, equity options, FX options and futures, both domestically and internationally, which have constituted a majority of the its market making revenues since 2007. It will also continue its institutional brokerage business that provides securities execution, fixed income and other brokerage services to institutional investors.
LaBranche expects to complete the DMM sale transaction by the end of January 2010, subject to satisfaction of customary closing conditions set forth in the definitive agreement. In addition to the closing conditions, the transaction is subject to the approval of the NYSE.
