Deal also includes warrant for 139,276 shares, exercisable at $3.59
By Devika Patel
Knoxville, Tenn., June 6 - American Superconductor Corp. negotiated a $10 million term loan with Hercules Technology Growth Capital, Inc. on June 5, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The loan matures on Dec. 1, 2014. Interest on the loan accrues at a floating rate equal to 11% plus the percentage by which the Prime rate exceeds 3.75%.
Hercules also received a warrant for 139,276 shares, which is exercisable at $3.59 until Dec. 5, 2017. The strike price reflects an 8.88% discount to the June 4 closing share price of $3.94.
Proceeds will be used for general corporate purposes.
Based in Devens, Mass., American Superconductor provides megawatt-scale services for wind power.
| Issuer: | American Superconductor Corp.
|
| Issue: | Term loan
|
| Amount: | $10 million
|
| Maturity: | Dec. 1, 2014
|
| Coupon: | 11% plus the percentage by which the Prime rate exceeds 3.75%
|
| Warrants: | For 139,276 shares
|
| Warrant expiration: | Dec. 5, 2017
|
| Warrant strike price: | $3.59
|
| Investor: | Hercules Technology Growth Capital, Inc.
|
| Settlement date: | June 5
|
| Stock symbol: | Nasdaq: AMSC
|
| Stock price: | $3.94 at close June 4
|
| Market capitalization: | $206.37 million
|
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