October 13, 2021, Novato, CA – Hennessy Advisors, Inc. (the “Company”) (NASDAQ: HNNA) today announced that it has priced an underwritten public offering of $35 million in aggregate principal amount of 4.875% unsecured notes due 2026 (the “2026 Notes”). Oppenheimer & Co. Inc. is acting as book-running manager for the offering and Janney Montgomery Scott LLC is acting as co-manager. The Company also granted the underwriters a 30-day option to purchase up to an additional $5,250,000 in aggregate principal amount of 2026 Notes to cover any overallotments.
The Company expects to list the 2026 Notes on Nasdaq under the trading symbol HNNAZ within 30 days of issuance. They will bear interest at a rate of 4.875% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, beginning December 31, 2021, and will mature on December 31, 2026. The Company may redeem the 2026 Notes in whole or in part at any time after December 31, 2023.
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 is offering the 2026 Notes pursuant to 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 registration statement includes a prospectus which contains a description of the 2026 Notes and certain risks related to the Company and the 2026 Notes. Investors are advised to carefully read and consider the disclosures made in the prospectus before investing in the 2026 Notes. A copy of the registration statement is available on the SEC’s website and may also be obtained from:
Oppenheimer & Co. Inc.
85 Broad Street
New York, New York 10004