Hedge firm GLG's notes price, shares jump

Shares of GLG Partners Inc, a hedge fund manager hammered over the past year by redemptions and losses, jumped Tuesday after the pricing of notes to help it buy back outstanding loans at a discount.

The London-based, New York-listed firm, which announced most details of the private placement Monday, on Tuesday said it will pay 5 percent interest on $214 million of dollar-denominated convertible subordinated notes.

GLG had originally also planned to issue euro-denominated notes, but then later cancelled that part of the offering because of the strong demand for the dollar-denominated one, which was increased from an original $200 million.

Proceeds will be used to buy back $285 million of $570 million of outstanding loans at 60 percent of par value. The dollar notes have a conversion price of $3.72 a share, while the euro-notes convert at EUR2.74 a share