By Sheri Kasprzak
New York, Aug. 17 - Gander Mountain Co. has completed a private placement of five-year floating-rate convertible subordinated notes for $20 million.
The notes were sold to David Pratt, a private investor who presently owns 1.4 million shares of Gander Mountain.
The notes bear interest at 7% for the first two years and will float with the federal funds rate up to 8.5% thereafter. The notes mature Aug. 16, 2010 and have an initial conversion price of $16.
The notes may be prepaid without penalty after Aug. 16, 2007.
Based in St. Paul, Minn., Gander Mountain is a retailer focused on outdoor equipment and apparel.
| Issuer: | Gander Mountain Co.
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| Issue: | Floating-rate convertible subordinated notes
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| Amount: | $20 million
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| Maturity: | Aug. 16, 2010
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| Coupon: | 7% for first two years; floating with federal funds rate to 8.5% thereafter
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| Conversion price: | $16 initially
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| Warrants: | No
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| Investor: | David Pratt
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| Settlement date: | Aug. 16
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| Stock price: | $11.26 at close Aug. 16
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