By Devika Patel
Knoxville, Tenn., April 28 - Environmental Power Corp. said it will sell $3 million of 14% convertible notes to Xergi AS.
The five-year unsecured convertible notes mature Jan. 1, 2014 and are initially convertible into shares at $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.
Tarrytown, N.Y.-based Environmental Power is a developer, owner and operator of biogas renewable energy projects.
| Issuer: | Environmental Power Corp.
|
| Issue: | Convertible notes
|
| Amount: | $3 million
|
| Maturity: | Jan. 1, 2014
|
| Coupon: | 14%
|
| Price: | Par
|
| Yield: | 14%
|
| Conversion price: | $5.40 initially, $6.35 in 2010, $7.65 in 2011, $9.75 in 2012 and $11.00 in 2013
|
| Call: | After three years at 110 if the company's stock trades above a volume-weighted average price of $6.40 for 45 days
|
| Warrants: | No
|
| Investor: | Xergi AS
|
| Pricing date: | April 28
|
| Stock symbol: | Nasdaq: EPG
|
| Stock price: | $0.50 at close April 28
|
| Market capitalization: | $7.81 million
|
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