By Sheri Kasprzak
New York, Feb. 13 - Devcon International Corp. said it is preparing to close a $45 million private placement of convertible notes with warrants.
The notes are convertible into a total of 45,000 series A convertible preferred shares at $1,000 each. The conversion will take place before July 31.
The full terms of the notes could not be determined by press time Monday.
The preferreds are convertible into common shares at $9.54 each.
The note offering is scheduled to close March 9.
The accredited investors purchasing the notes will receive warrants for 1,650,943 shares, exercisable at $11.925 each.
Proceeds from the offering will be used to repay an $8 million bridge loan issued in November 2005 and to acquire Guardian International, Inc.
Based in Deerfield Beach, Fla., Devcon provides electronic security services to commercial and residential clients.
| Issuer: | Devcon International Corp.
|
| Issue: | Notes convertible into series A preferred stock
|
| Amount: | $45 million
|
| Conversion price: | $1,000
|
| Warrants: | For 1,650,943 shares
|
| Warrant strike price: | $11.925
|
| Announcement date: | Feb. 13
|
| Settlement date: | March 9
|
| Preferreds
|
| Shares: | 45,000 issuable upon conversion of notes
|
| Conversion price: | $9.54 per share (for preferreds)
|
| Conversion date: | By July 31
|
| Settlement date: | March 9
|
| Stock symbol: | Nasdaq: DEVC
|
| Stock price: | $9.10 at close Feb. 10
|
| Stock price: | $8.90 at close Feb. 13
|
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