In this article, we want to present a new baby bond issued by Cowen Inc. (COWN). It is a surprise to see the company use this symbol, as it was the ticker symbol of an old issue that was redeemed on Jan. 8 this year.
Our goal is purely to inform you about the product while refraining ourselves from an investment recommendation. Even though the product might not be of interest to us and our financial objectives, it is definitely worth taking a look at.
The New Issue
Before we get into our brief analysis, here is a link to the prospectus. For a total of 3.6M notes issued, the total gross proceeds to the company are $90M. You can find some relevant information about the new baby bond in the table below:
Cowen’s 7.75% Senior Notes due 2033 pay a fixed interest at a rate of 7.75% (NASDAQ:COWNL). The new issue has no Standard & Poor’s rating, is callable as of June 15, 2023, and is maturing on June 15, 2033. COWNL is currently below its par value at a price of $24.91 and has a 7.84% yield to call and a 7.78% yield to maturity. The interest paid by this baby bond is not eligible for the preferential 15% to 20% tax rate. This results in the “qualified equivalent” YTC and YTM sitting around 6.53% and 6.48%, respectively.
Here is the product’s yield-to-call curve:
As per Reuters:
Cowen Inc., formerly Cowen Group, Inc., incorporated on June 1, 2009, is a financial services company. The Company provides alternative investment management, investment banking, research, sales and trading, and prime brokerage services. The Company operates through two segments: alternative investment and broker-dealer. The alternative investment segment includes hedge