Headhunter slake. (Wall Street West).Korn/Ferry International Inc. managed through some financial contortions to raise $50 million in a market that grudgingly grudg·ing adj. Reluctant; unwilling. grudg  ing·ly adv.Adv. 1. gives up its pennies to public companies seeking capital. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a mid-September filing with the Securities and Exchange Commission, Korn/Ferry sold $50 million in convertible bonds and stock in June to San Francisco-based Friedman Fleischer & Lowe LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control in a private placement. Both the bonds and stock yield 7.5 percent. If converted, they would give Friedman Fleischer an 11.4 percent stake in Korn/Ferry, which bills itself as the world's largest executive search firm. The convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , purchased at $7.25 a share, are exchangeable for Korn/Ferry common stock at $10.25 (which traded last week at just over $7). In a little twist, Korn/Ferry will not pay cash dividends on the convertible bonds or preferred shares for at least two years, but rather "P1K" -- payment in kind. In English, that means more stock. Friedman Fleischer has warrants on additional shares, enabling the private equity shop to take an even larger stake depending on how long Korn/Ferry pays in stock, and if the firm exercises its warrants, or even if it goes out and buys more Korn/Ferry on the open market. Friedman Fleischer's stake in Korn/Ferry drew notice when the investment firm filed papers with the SEC indicating plans to sell $40 million of Korn/Ferry stock. That set local Wall Streeters wondering if Friedman Fleischer was bailing out already. It turns out the filing was akin to a "shelf registration," in that the investors do not plan to sell the stock now, but rather want to have all the paperwork in place if and when they do, said Korn/Ferry officials. "They have no plans to sell now," said Gregg Kvochak, Korn/Ferry planning director. "It is just a registration. Obviously, they would like to sell at above their strike price of $10.25 a share. (Friedman Fleischer's stake) really is a bet on the upside of Korn/Ferry." "We are long-term investors, we think in terms of four to five years," said David Lowe
The headhunting headhunting Practice of removing, displaying, and in some cases preserving human heads. Headhunting arises in some cultures from a belief in the existence of a more or less material soul that resides in the head. outfit was a hot stock back in 2000, but has since struggled as the economy slowed and its online presence lost its luster. Its $40 high is about six times its current trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. . The $50 million infusion from Friedman Fleischer was sign that some "smart money" likes Korn/Ferry, said Dan Margolis, company spokesman. Contributing columnist Benjamin Mark Cole Mark Cole is a multi-instrumentalist blues and roots musician based in Gloucester, UK Music Mark primarily writes and performs blues music but also writes and performs music influenced by other American roots music genres such as americana, cajun, zydeco, bluegrass and can be reached at sevencontinents@mindspring.com. |
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