By Sheri Kasprzak
New York, Aug. 22 - HearUSA, Inc. said it has completed a private placement for $5.5 million.
The company sold 7% subordinated notes that mature in three years.
The investors also received warrants for 1.5 million shares, exercisable at $2.00 each for five years. The investors will forfeit 25% of the warrants if the company prepays the notes before Dec. 31. There is no prepayment penalty.
C.E. Unterberg, Towbin was the placement agent.
The proceeds will be used to redeem all of the company's 1998-E series convertible preferred stock.
Based in West Palm Beach, Fla., HearUSA operates hearing-care centers.
| Issuer: | HearUSA, Inc.
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| Issue: | Subordinated notes
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| Amount: | $5.5 million
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| Maturity: | Three years
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| Warrants: | For 1.5 million shares
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| Warrant strike price: | $2.00
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| Warrant settlement date: | Five years
|
| Placement agent: | C.E. Unterberg, Towbin
|
| Settlement date: | Aug. 22
|
| Stock price: | $1.63 at close Aug. 19
|
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