Cowen Prices New Baby Bond at a Tasty 7.75%

Cowen Inc. has priced their new senior notes at a lofty 7.75%.  We had noted that with the longer dated maturity we would have little interest, but at this lofty coupon one should consider this nice bond.

Certainly the longer dated maturity of these baby bonds (in 2033) has cost the company a bit in higher coupon cost.

The final pricing term sheet can be found here.

The issue will not trade Grey Market prior to trading on the NASDAQ.

At this point we find no ticker symbol being released.

8 thoughts on “Cowen Prices New Baby Bond at a Tasty 7.75%”

  1. This explains the weakness in COWNZ today. Too bad it won’t trade on the Grey Market whereby one might get it for $25 or less, but who knows, it may trade weakly for a while. Any thoughts on selling COWNZ and buying this new one? I assume COWNZ will trade below this new one despite the difference in maturities since both are quite far out anyway.

  2. I’d imagine COWNZ will trade down to an equivalent yield as the new issue, at least in the short term.

    1. Ouch – that would be ugly. If the new one trades at par, then COWNZ at the equivalent yield would be (7.35/7.75)*$25 = $23.71. Might be better to sell now and buy back later or jump on the new baby bond as soon as it starts trading. Anyone here have an action plan? On another note I find it a little disturbing that COWN must pay such a high yield to attract money and makes me nervous with the company. As an ongoing example, take a look at LMRK and its preferreds, LMRKO, -P, -N.

  3. I don’t know much about Cowen but their Z-score seems to have gone down quite a bit the last few years.

    I am going to avoid this issue at the moment. Maybe I’ll reconsider it, someday.

    1. Some Chinese company a couple years ago gave it cash that in part was needed to call that onerous 8.25% issue last year or so. This company doesnt knock the cover off the ball and a bit beyond me….I will not taste of this issue either.

  4. The new 7.75% due 6/15/2033 symbol is COWNL. This is a bit confusing because their old called senior 8.25% 10/15/2021 had the same symbol. Wishing you profitable investing, Nomad

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