GAMCO Investors, Inc. Announces Private Placement of $110 Million Convertible Note
16 August 2016 - 10:00PM
Business Wire
GAMCO Investors, Inc. (NYSE:GBL) announced today that Cascade
Investment, L.L.C. has agreed to purchase a $110 million five year
convertible note in a private placement transaction.
The note has a coupon of 4.5%, is convertible into GBL Class A
common stock at $55 per share and provides the purchaser with
certain put rights and an escrow agreement. The investment will
provide funds to refinance existing indebtedness and for global
strategic initiatives.
As a result of this investment, Cascade Investment, L.L.C. will
own 15.9% of GBL’s Class A shares, on an as-converted basis. Mario
J. Gabelli, Chairman and Chief Executive Officer, commented: “We
are delighted to renew our relationship with Cascade which will
provide us with broad flexibility in pursuing our growth
initiatives.”
GAMCO Investors, Inc., through its subsidiaries, manages private
advisory accounts (GAMCO Asset Management Inc.), mutual funds and
closed-end funds (Gabelli Funds, LLC). As of June 30, 2016, GAMCO
had approximately $39.3 billion in assets under management.
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
Our disclosure and analysis in this press release contain some
forward-looking statements. Forward-looking statements give our
current expectations or forecasts of future events. You can
identify these statements because they do not relate strictly to
historical or current facts. They use words such as “anticipate,”
“estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and
other words and terms of similar meaning. They also appear in any
discussion of future operating or financial performance. In
particular, these include statements relating to future actions,
future performance of our products, expenses, the outcome of any
legal proceedings, and financial results. Although we believe that
we are basing our expectations and beliefs on reasonable
assumptions within the bounds of what we currently know about our
business and operations, there can be no assurance that our actual
results will not differ materially from what we expect or believe.
Some of the factors that could cause our actual results to differ
from our expectations or beliefs include, without limitation: the
adverse effect from a decline in the securities markets; a decline
in the performance of our products; a general downturn in the
economy; changes in government policy or regulation; changes in our
ability to attract or retain key employees; and unforeseen costs
and other effects related to legal proceedings or investigations of
governmental and self-regulatory organizations. We also direct your
attention to any more specific discussions of risk contained in our
Form 10-K and other public filings. We are providing these
statements as permitted by the Private Litigation Reform Act of
1995. We do not undertake to update publicly any forward-looking
statements if we subsequently learn that we are unlikely to achieve
our expectations or if we receive any additional information
relating to the subject matters of our forward-looking
statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160816005141/en/
GAMCO Investors, Inc.Douglas R. Jamieson, 914-921-5020President
& Chief Operating Officerwww.gabelli.com
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