By Sheri Kasprzak
New York, Sept. 5 - Nyfix Inc. entered into agreements to wrap a $75 million private placement of convertible preferred stock with Warburg Pincus LLC.
Warburg agreed to buy 1.5 million shares of the preferred stock at $50.00 each.
Each preferred is convertible into 10 common shares at $5.00 each, a 6.5% discount to the company's closing price of $5.35 on Sept. 1 and a premium of 9.3% to the last 45 trading-day average.
Warburg will also receive warrants for 2.25 million shares, exercisable at $7.75 each.
Proceeds will be used for business development and general corporate purposes.
In other news at Nyfix, Lon Gorman was named the company's board chairman, replacing Peter Hansen. Also, P. Howard Edelstein, the company's former financial technology executive, was promoted to chief executive officer and board member.
New York-based Nyfix develops international and domestic trading workstations.
| Issuer: | Nyfix Inc.
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| Issue: | Convertible preferred stock
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| Amount: | $75 million
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| Shares: | 1.5 million
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| Price: | $50.00
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| Conversion ratio: | One preferred into 10 common shares
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| Conversion price: | $5.00
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| Warrants: | For 2.25 million shares
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| Warrant strike price: | $7.75
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| Investor: | Warburg Pincus LLC
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| Announcement date: | Sept. 5
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| Stock symbol: | Pink Sheets: NYFX
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| Stock price: | $5.35 at close Sept. 1
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