The firm will use the proceeds for a variety of global strategic initiatives, particularly alternative investments, Gabelli announced yesterday. As a result, Cascade will own 6% of Gabellis aggregate common stock.
"This investment together with our existing financial resources provides flexibility in pursuing our growth initiatives," said Mario Gabelli, CEO of the company. The Initiatives the company will pursue as a result of the investment include their own fund funds, proprietary hedge funds, joint ventures, and affiliations, said Karl Pohl, a director at Gabelli.
The ten-year note pays an interest rate of 6.5% for the first year and 6% after that and is convertible into Gabelli Class A stock at $53. Gabelli stock was trading at $46.72 at the time of publication, according to Morningstar.