Offering with Dunham & Associates Holdings includes five-year warrants
By Devika Patel
Knoxville, Tenn., Jan. 7 - American Spectrum Realty, Inc. said it arranged a $6 million working capital loan. The investor, Dunham & Associates Holdings, Inc., has already invested $3 million on Jan. 3.
The five-year loan accrues interest at 8% in the first year and at 12% for the remainder of the term.
Dunham also received a five-year warrant for 600,000 common shares, exercisable at $2.00. The strike price reflects a 9.89% premium to the Jan. 2 closing share price of $1.82.
"These funds allow us to invest in managing the assets of a recently acquired portfolio of real property, acquire additional properties and portfolios to manage as well as to invest in improving properties for investor/partners in our legacy portfolio," chief executive officer William J. Carden said in a press release.
The real estate investment, management and leasing company is based in Houston.
| Issuer: | American Spectrum Realty, Inc.
|
| Issue: | Working capital loan
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| Amount: | $6 million
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| Maturity: | Five years
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| Coupon: | 8% in the first year and at 12% for remainder of the term
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| Warrants: | For 600,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.00
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| Investor: | Dunham & Associates Holdings, Inc.
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| Settlement date: | Jan. 3 (for $3 million)
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| Stock symbol: | NYSE: AQQ
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| Stock price: | $1.82 at close Jan. 2
|
| Market capitalization: | $7.19 million
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