By Sheri Kasprzak
New York, June 5 - Distributed Energy Systems Corp. wrapped a private placement of senior secured promissory notes for $12.5 million.
Perseus, LLC bought the 12.5% notes, which are due March 1, 2008.
The investor also received warrants for 7,954,536 shares, exercisable at $0.80 each for five years.
Perseus has the option to buy $15 million of convertible notes, which will be due Nov. 30, 2008 and convertible into common shares at $1.20 each or 75% of the market price, whichever is lower.
The convertible notes would be accompanied by warrants for up to 34,989,629 shares, exercisable for five years at prices ranging from $0.80 each to $3.00 each.
Jefferies & Co., Inc. was the placement agent for the deal.
Proceeds from the $15 million convertible note will be used to repay the $12.5 million loan.
Also, Distributed announced Tuesday that it is pursuing commercially reasonable efforts to sell its Proton Energy Systems business.
Distributed, based in Wallingford, Conn., develops products used in the decentralized energy marketplace.
Completed offering
| Issuer: | Distributed Energy Systems Corp.
|
| Issue: | Senior secured promissory notes
|
| Amount: | $12.5 million
|
| Maturity: | March 1, 2008
|
| Coupon: | 12.5%
|
| Price: | Par
|
| Yield: | 12.5%
|
| Warrants: | For 7,954,536 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.80
|
| Agent: | Jefferies & Co., Inc.
|
| Investor: | Perseus, LLC
|
| Settlement date: | June 5
|
| Stock symbol: | Nasdaq: DESC
|
| Stock price: | $0.6901 at close June 5
|
|
|
| Optional offering
|
| Issuer: | Distributed Energy Systems Corp.
|
| Issue: | Convertible notes
|
| Amount: | $15 million
|
| Maturity: | Nov. 30, 2008
|
| Conversion price: | The lesser of $1.20 or 75% of the market price
|
| Warrants: | For 34,989,629 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.80 to $3.00
|
| Announcement date: | June 5
|
| Stock symbol: | Nasdaq: DESC
|
| Stock price: | $0.6901 at close June 5
|
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