Long-term debt

6 Months Ended

Jun. 30, 2011

Long-term debt [Abstract]

Long-term debt

6. Long-term debt

Expressed in thousands of dollars.

			Interest Rate at			June 30,		December 31,
Issued	Maturity Date		June 30, 2011			2011		2010
Senior Secured Notes (a)	4/15/2018			8.75	%	$	200,000	$	—
Senior Secured Credit Note (b)	7/31/2013	*				$	—	$	22,503
Subordinated Note (c)	1/31/2014	*				$	—	$	100,000

*	Retired on April 12, 2011
(a)	On April 12, 2011, the Company completed the private placement of $200.0 million in aggregate principal amount of 8.75 percent Senior Secured Notes due April 15, 2018 at par (the “Notes”).The interest on the Notes is payable semi-annually on April 15th and October 15th. Proceeds from the private placement were used to retire the Senior Secured Credit Note due 2013 ($22.4 million) and the Subordinated Note due 2014 ($100.0 million) (together, the “Debt”) and for other general corporate purposes. The private placement resulted in the fixing of the interest rate over the term of the Notes compared to the variable rate debt that was retired and an extension of the debt maturity dates as described above. The cost to issue the Notes was approximately $4.5 million which has been capitalized during the three months ending June 30, 2011 and amortized over the period of the Notes. The Company has written off $344,000 in unamortized debt issuance costs related to the Senior Secured Credit Note during the three months ending June 30, 2011. Additionally, as a result of the retirement of the Subordinated Note, the effective portion of the net loss of $1.3 million related to the interest rate cap cash flow hedge has been reclassified from accumulated other comprehensive income (loss) on the condensed consolidated balance sheet to interest expense in the condensed consolidated statement of operations during the three months ending June 30, 2011.
	The indenture for the Notes contains covenants which place restrictions on the incurrence of indebtedness, the payment of dividends, sale of assets, mergers and acquisitions and the granting of liens. The Notes provide for events of default including nonpayment, misrepresentation, breach of covenants and bankruptcy. The Company’s obligations under the Notes are guaranteed, subject to certain limitations, by the same subsidiaries that guaranteed the obligations under the Senior Secured Credit Note and the Subordinated Note which were retired. These guarantees may be shared, on a senior basis, under certain circumstances, with newly incurred debt outstanding in the future. At June 30, 2011, the Company was in compliance with all of its covenants.

	On July 12, 2011, the Company’s Registration Statement on Form S-4, filed to register the exchange of the Notes for fully registered Notes, was declared effective by the SEC. The Exchange Offer is currently scheduled to expire on August 9, 2011.
(b)	In 2006, the Company issued a Senior Secured Credit Note in the amount of $125.0 million at a variable interest rate based on LIBOR with a seven-year term to a syndicate led by Morgan Stanley Senior Funding Inc., as agent. In accordance with the Senior Secured Credit Note, the Company provided certain covenants to the lenders with respect to the maintenance of a minimum fixed charge ratio and maximum leverage ratio and minimum net capital requirements with respect to Oppenheimer.
	The principal balance of the Senior Secured Credit Note in the amount of $22.4 million was repaid in full on April 12, 2011 in connection with the issuance of the Senior Secured Note described in (a) above.
	The effective interest rate on the Senior Secured Credit Note for the period outstanding in the three months ended June 30, 2011 was 4.88%. Interest expense, as well as interest paid on a cash basis for the three and six months ended June 30, 2011, on the Senior Secured Credit Note was $35,000 and $306,000, respectively ($388,000 and $775,000, respectively, in the three and six months ended June 30, 2010).
(c)	On January 14, 2008, in connection with the acquisition of certain businesses from CIBC World Markets Corp., CIBC made a loan in the amount of $100.0 million and the Company issued a Subordinated Note to CIBC in the amount of $100.0 million at a variable interest rate based on LIBOR. The purpose of this note was to support the capital requirements of the acquired business. In accordance with the Subordinated Note, the Company provided certain covenants to CIBC with respect to the maintenance of a minimum fixed charge ratio and maximum leverage ratio and minimum net capital requirements with respect to Oppenheimer.
	The principal balance of the Subordinated Note in the amount of $100.0 million was repaid in full on April 12, 2011 in connection with the issuance of the Senior Secured Notes described in (a) above.
	The effective interest rate on the Subordinated Note for the period outstanding in three months ended June 30, 2011 was 5.55%. Interest expense, as well as interest paid on a cash basis for the three and six months ended June 30, 2011, on the Subordinated Note was $185,000 and $1.6 million, respectively ($1.4 million and $2.8 million for the three and six months ended June 30, 2010).