By Rebecca Melvin
New York, March 31 - Environmental Power Corp. priced an offering of $5 million of five-year unsecured convertible notes to yield 14%, according to a Securities and Exchange Commission prospectus.
The initial conversion price from issue through Dec. 31 is $5.40 per share
During 2010 the conversion price is $6.35, then $7.65 in 2011, $9.75 in 2012 and $11.00 in 2013.
The notes will be non-callable for three years, and after that the company may redeem the notes at a price of 110 if its stock has traded above a volume-weighted average price of $6.40 for 45 days.
Chicago-based Ziegler Capital Markets is underwriter for the registered deal.
Proceeds will be used to construct and operate projects in Texas, California and Nebraska.
Tarrytown, N.Y.-based Environmental Power is a developer, owner and operator of biogas renewable energy projects.
Environmental Power previously sold $5 million of convertibles with similar terms in an offering that closed on March 13.
| Issuer: | Environmental Power Corp.
|
| Issue: | Convertible unsecured notes
|
| Amount: | $5 million
|
| Pricing date: | March 10
|
| Maturity: | Jan. 1, 2014
|
| Coupon: | 14%
|
| Price: | Par of $5,000
|
| Yield: | 14%
|
| Conversion price: | $5.40 in 2009, $6.35 in 2010, $7.65 in 2011, $9.75 in 2012 and $11.00 in 2013
|
| Call: | After 3 years at 110 subject to $6.40 hurdle
|
| Bookrunner: | Ziegler Capital Markets
|
| Takeover protection: | Yes
|
| Distribution: | Registered
|
| Pricing date: | March 30
|
| Stock symbol: | Nasdaq: EPG
|
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