By Rebecca Melvin
New York, March 16 - Environmental Power Corp. has completed the sale of $5 million of five-year unsecured convertible notes at par to yield 14%, according to a Securities and Exchange Commission prospectus.
The company can make further issuances of these notes for a maximum principal amount of $53 million of notes.
Aimed at retail investors, the notes will be sold in denominations of $5,000, or in whole multiples of $1,000 in excess of that.
The initial conversion price from issue through Dec. 31 is $5.40 per share, which equates to an initial conversion premium of 91%.
During 2010, the conversion price is $6.35, and during 2011, the conversion price is $7.65.
The notes will be non-callable for three years, and after that the company may require holders to convert all the notes into stock.
The registered deal was placed via Chicago-based Ziegler Capital Markets.
Proceeds will be used to fund projects in Texas, California and Nebraska.
Tarrytown, N.Y.-based Environmental Power is a developer, owner and operator of biogas renewable energy projects.
| Issuer: | Environmental Power Corp.
|
| Issue: | Convertible unsecured notes
|
| Amount: | $5 million
|
| Maturity: | Jan. 1, 2014
|
| Bookrunner: | Ziegler Capital Markets
|
| Coupon: | 14%
|
| Price: | Par of $5,000
|
| Yield: | 14%
|
| Conversion premium: | 91%
|
| Conversion price: | $5.40
|
| Call feature: | Non-callable for three years
|
| Takeover protection: | Yes
|
| Distribution: | Registered
|
| Pricing date: | March 10
|
| Settlement date: | March 16
|
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