The notes bear interest at a rate of 5.00 per cent per year and rank junior in right of payment to all of GLG's existing and future senior indebtedness.
 
Noam Gottesman, chairman and co-chief executive of GLG, Emmanuel Roman, co-chief executive, and Pierre Lagrange, senior managing director of GLG Partners, each a director of GLG, purchased collectively USD30m aggregate principal amount of the notes from the initial purchasers as part of this offering, through their affiliates.

The notes are convertible, at the option of the holder, into shares of GLG's common stock at an initial conversion rate of 268.8172 shares per USD1,000 principal amount of notes, subject to certain adjustments. The initial conversion rate is equivalent to a conversion price of approximately USD3.72 per share.

GLG used a portion of the net proceeds from the offering of the notes to acquire a portion of the indebtedness outstanding under GLG's credit agreement in a transaction that closed concurrently with the closing of the note offering.

Approximately USD285m of USD570m principal amount of loans outstanding under the credit facility were acquired at 60 per cent of par value. Any proceeds not used to acquire its outstanding indebtedness will be used by GLG for general corporate purposes to the extent permitted under the credit agreement.