FBR & Co (FBRC) – Odd Lot Tender Offer – $104 Potential

Current Price – $27.95

Offer Price – $28.00 - $29.00

Upside – 3.8% or $104 for Odd Lot holders (if priced at the upper limit)

Expiration date – August 20, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Trading Strategy:

Buy 99 shares of FBRC below $28 and tender all your shares before August 20, 2014 at $28.

Summary:

FBR & Co., invites its stockholders to tender up to 1,000,000 shares of its common stock, $0.001 par value per share, for purchase by the Company at a price not less than $28.00 and not more than $29.00 per share. The 1,000,000 shares represent approximately 9.9% of our outstanding common stock as of July 18, 2014.

No proration for Odd Lot holders:

If more than 1,000,000 shares are tendered, all shares tendered will be purchased on a pro rata basis, except for “odd lots” (lots held by owners of fewer than 100 shares), which will be purchased on a priority basis. The tender offer is not conditioned on any minimum number of shares being tendered.

Source of Funds:

Since the Purchase Price will only be determined after the Expiration Date, the aggregate purchase price, including all related fees, will not be known until after that time. Assuming we purchase 1,000,000 shares pursuant to the tender offer at an offer price not less than $28.00 and not more than $29.00 per share, we expect that the aggregate purchase price, including all related fees and expenses, will be approximately $28,200,000 to $29,450,000 depending upon the actual Purchase Price. We expect to fund the purchase of shares tendered in the tender offer and the payment of related fees and expenses from cash on hand. We do not have any alternative financing arrangement or alternative financing plans.