NOVATO, Calif., Oct. 20, 2021 /PRNewswire/ -- Hennessy
Advisors, Inc. (the "Company") (NASDAQ: HNNA) today
announced that it has closed an underwritten public offering of
4.875% unsecured notes due 2026 (the "2026 Notes") in an aggregate
principal amount of $40.25 million,
which includes $5.25 million of
2026 Notes issued pursuant to the full exercise of the
underwriters' option. Oppenheimer & Co. Inc. acted as
book-running manager for the offering, and Janney Montgomery Scott
LLC acted as co–manager.
The Company and this issuance of the 2026 Notes both received an
investment–grade rating of "A" from Egan-Jones Ratings Company, an
independent unaffiliated ratings agency. The Company expects the
2026 Notes to begin trading on Nasdaq under the trading symbol
HNNAZ within 30 days.
"We are proud of our consistent financial results, our track
record of accretive acquisitions, and our commitment to organic
growth. This bond offering was an efficient way to raise capital
for the next steps in our Company's growth," said Neil Hennessy, Chairman and CEO of Hennessy
Advisors, Inc. "I believe we are now in a remarkable position to
continue implementing our existing business strategies," he
added.
The offering resulted in net proceeds to the Company of
approximately $39 million after
deducting underwriting discounts and commissions, but before
expenses. The Company expects to use the net proceeds from the
offering for general corporate purposes, which may include future
acquisitions or repurchase of shares of the Company's outstanding
common stock pursuant to a self–tender offer.
The Company offered the 2026 Notes under the registration
statement on Form S-1 that the Company initially filed with the
Securities and Exchange Commission (the "SEC") on September 23, 2021, and that the SEC declared
effective on October 13,
2021. The offering of the 2026 Notes was made by means of a
prospectus, which was filed with the SEC. Copies of the
registration statement and prospectus are available on the SEC's
website and may also be obtained from:
Oppenheimer & Co. Inc.
85 Broad Street
New York, New York 10004
FixedIncomeProspectus@opco.com
Supplemental Information
This press release does not
constitute an offer to sell or a solicitation of an offer to buy
the securities described herein, nor shall there be any sale of
these securities in any state or other jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
About Hennessy Advisors, Inc.
Hennessy Advisors, Inc.
is a publicly traded investment manager offering a broad range of
domestic equity, multi-asset, and sector and specialty mutual
funds. Hennessy Advisors, Inc. is committed to providing superior
service to shareholders and employing a consistent and disciplined
approach to investing based on a buy–and–hold philosophy that
rejects the idea of market timing.
Forward-Looking Statements
This press release
contains "forward-looking statements" for which Hennessy Advisors,
Inc. claims the protection of the safe harbor contained in the
Private Securities Litigation Reform Act of
1995. Forward–looking statements relate to expectations and
projections about future events based on currently available
information. Forward–looking statements are not a guarantee of
future performance or results and are not necessarily accurate
indications of the times at which, or means by which, such
performance or results may be achieved. Forward–looking
statements are subject to risks, uncertainties, and assumptions,
including those described in the sections entitled "Risk Factors"
and elsewhere in the reports that Hennessy Advisors, Inc. files
with the Securities and Exchange Commission. Unforeseen
developments could cause actual performance or results to differ
substantially from those expressed in, or suggested by, the
forward–looking statements. Hennessy Advisors, Inc. management does
not assume responsibility for the accuracy or completeness of the
forward-looking statements and undertakes no responsibility to
update any such statement after the date of this press release to
conform to actual results or to changes in expectations.
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SOURCE Hennessy Advisors, Inc.