Note is convertible into common stock at 45% discount to market price
By Angela McDaniels
Tacoma, Wash., Feb. 6 - Liberty Coal Energy Corp. sold a $32.5 million convertible note to Asher Enterprises, Inc.
The note matures on Oct. 28, 2013 and has an 8% interest rate, according to an 8-K filing with the Securities and Exchange Commission.
The note is convertible into common stock beginning 180 days after issuance. The conversion price is 45% of the average of the lowest three trading prices for the company's common stock during the 10 trading days ending on the last trading day prior to the conversion date.
The note can be prepaid in full beginning 60 days after issuance at 130% of par. The redemption price is 140% of par for days 61 through 120 and 150% of par for days 121 through 180.
The coal company is based in Denver.
| Issuer: | Liberty Coal Energy Corp.
|
| Issue: | Convertible note
|
| Amount: | $32.5 million
|
| Maturity: | Oct. 28, 2013
|
| Coupon: | 8%
|
| Price: | Par
|
| Conversion option: | Beginning 180 days after issuance
|
| Conversion price: | 45% of average of lowest three trading prices for common stock during 10 trading days ending on last trading day prior to conversion date
|
| Warrants: | No
|
| Investor: | Asher Enterprises, Inc.
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 30
|
| Stock symbol: | OTCBB: LBTG
|
| Stock price: | $0.03 at close Feb. 5
|
| Market capitalization: | $6.67 million
|
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