By Sheri Kasprzak
New York, May 8 - House of Taylor Jewelry, Inc. has received agreements for a $10 million convertible note offering.
A group of institutional and other investors agreed to buy the senior secured convertible notes. The maturity of the notes could not be determined by press time Monday.
The notes bear interest at 9.75% annually and are convertible into a total of 2.54 million shares at $4.00 each.
The investors will also receive warrants for 1,905,000 shares, exercisable at $5.00 each for 60 months.
The offering is slated to close May 12.
Proceeds from the deal will be used for inventory purchases, marketing, corporate partnering and working capital.
House of Taylor, based in Los Angeles, is a jewelry wholesaler.
| Issuer: | House of Taylor Jewelry, Inc.
|
| Issue: | Senior secured convertible notes
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| Amount: | $10 million
|
| Coupon: | 9.75%
|
| Price: | Par
|
| Yield: | 9.75%
|
| Conversion price: | $4.00
|
| Conversion ratio: | Into 2.54 million shares
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| Warrants: | For 1,905,000 shares
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| Warrant expiration: | 60 months
|
| Warrant strike price: | $5.00
|
| Announcement date: | May 8
|
| Settlement date: | May 12
|
| Stock symbol: | Nasdaq: HOTJ
|
| Stock price: | $3.85 at close May 5
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