Series A convertible preferreds sold to investor Coliseum Holdings I
By Devika Patel
Knoxville, Tenn., June 24 – Universal Technical Institute Inc. said it arranged a $70 million private placement of 7.5% series A convertible preferred stock with Coliseum Holdings I, LLC.
The company sold 700,000 preferreds at $100.00 apiece. The preferreds will initially each convert into 30.03 common shares at $3.33 per share, which is a 22.87% premium to the June 23 closing share price of $2.71. After three years, Universal Technical Institute may redeem the preferreds.
Proceeds will be used for strategic long-term growth initiatives, including the expansion of the company's metro-model campuses to new markets and the creation of new programs and acquisitions.
Universal Technical Institute is a Phoenix-based training program for careers in automotive, collision repair, motorcycle and marine technicians.
| Issuer: | Universal Technical Institute Inc.
|
| Issue: | Series A convertible preferred stock
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| Amount: | $70 million
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| Shares: | 700,000
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| Price: | $100.00
|
| Dividends: | 7.5%
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| Conversion price: | $3.33
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| Conversion ratio: | Into 30.03 common shares (per preferred)
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| Conversion premium: | 22.87%
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| Call: | After three years
|
| Warrants: | No
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| Investor: | Coliseum Holdings I, LLC
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| Pricing date: | June 24
|
| Stock symbol: | NYSE: UTI
|
| Stock price: | $2.71 at close June 23
|
| Market capitalization: | $60.98 million
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