October 20, 2021, Novato, CA – 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