Douglas Elliman Inc. has entered into an agreement with entities advised by Kennedy Lewis Investment Management LLC to issue $50 million in senior secured convertible promissory notes due 2029. This transaction was privately placed based on a securities exemption. The proceeds are designated for general corporate purposes. The notes carry a 7.0% annual interest rate, or an 8.0% rate if paid in kind, and feature conversion rights into common stock at an initial rate of $1.50 per share, subject to limitations. The company has also created provisions for redemption, repurchase obligations in the event of major transactions, and accompanying affirmative and negative covenants. Additionally, David K. Chene has been nominated to the company’s board under the agreement terms.
Principal Names Mentioned: - Douglas Elliman Inc. - Kennedy Lewis Management LLC (KLIM) - Alter Domus (US) LLC - David K. Chene