Convertible subordinated notes sold with warrants for 746,268 shares
By Devika Patel
Knoxville, Tenn., April 11 - Local Corp. arranged a $5 million private placement of convertible subordinated notes with The Tail Wind Fund Ltd. on April 10, according to an 8-K filed Thursday with the Securities and Exchange Commission. Merriman Capital, Inc. is the lead agent, with Ladenburg Thalmann & Co. Inc. assisting.
The 7% notes are due 2015 and will convert to common shares at $2.01 per share.
In addition, Tail Wind received warrants for 746,268 shares. The warrants are each exercisable at $2.01 until April 11, 2018.
The conversion price and strike price are a 14.21% premium to the April 9 closing share price of $1.76.
Proceeds will be used for general working capital.
Based in Irvine, Calif., Local operates a local media advertising company that enables local businesses and consumers to find each other and connect.
| Issuer: | Local Corp.
|
| Issue: | Convertible subordinated notes
|
| Amount: | $5 million
|
| Maturity: | April 11, 2015
|
| Coupon: | 7%
|
| Conversion price: | $2.01
|
| Warrants: | For 746,268 shares
|
| Warrant expiration: | April 11, 2018
|
| Warrant strike price: | $2.01
|
| Agent: | Merriman Capital, Inc. (lead), Ladenburg Thalmann & Co. Inc.
|
| Investor: | The Tail Wind Fund Ltd.
|
| Pricing date: | April 10
|
| Stock symbol: | Nasdaq: LOCM
|
| Stock price: | $1.76 at close April 9
|
| Market capitalization: | $40.13 million
|
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