Investor Shanda Interactive purchases an equal amount of shares, notes
By Devika Patel
Knoxville, Tenn., April 1 - Ku6 Media Co., Ltd. arranged a $100 million private placement of senior convertible notes and common stock, according to a press release from the investor, Shanda Interactive Entertainment Ltd.
The company is selling $50 million in 3% three-year convertibles which will initially convert to common shares at $0.03925 per share, or at $3.925 per American Depositary Share.
It also will sell $50 million in shares at $0.0325 apiece, or at $3.25 per American Depositary Share.
The conversion price is a 0.13% premium and the price per share is a 17.09% discount to the $3.92 closing price on March 31.
The information services and entertainment company is based in Beijing.
| Issuer: | Ku6 Media Co., Ltd.
|
| Issue: | Senior convertible notes, common stock
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| Amount: | $100 million
|
| Warrants: | No
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| Investor: | Shanda Interactive Entertainment Ltd.
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| Pricing date: | April 1
|
| Stock symbol: | Nasdaq: KUTV
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| Stock price: | $3.92 at close March 31
|
| Market capitalization: | $147.17 million
|
|
|
| Notes
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| Amount: | $50 million
|
| Maturity: | Three years
|
| Coupon: | 3%
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| Conversion price: | $0.03925
|
| Conversion premium: | 0.13%
|
|
|
| Shares
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| Amount: | $50 million
|
| Price: | $0.0325
|
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