By Sheri Kasprzak
New York, July 15 - Able Energy, Inc. said it has completed a private placement of convertible debentures for $2.5 million.
The variable-rate debentures mature in two years, pay interest at Libor plus 400 basis points and are convertible into common shares at $6.50 each.
The investors will also receive warrants for 192,308 common shares, exercisable at $7.15 each for five years.
If the company conducts a financing under which it sells securities at a price lower than the conversion price of the debentures, Able may redeem the debentures at 125% of the face value plus interest.
The investors also have an additional investment right, exercisable for nine months after a registration statement is declared effective, for up to $15 million in convertible debentures and warrants for up to 50% of the shares issuable upon conversion.
Based in Rockaway, N.J., Able Energy distributes heating oil to retail customers.
| Issuer: | Able Energy, Inc.
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| Issue: | Convertible debentures
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| Amount: | $2.5 million
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| Maturity: | Two years
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| Coupon: | Libor plus 400 basis points
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| Conversion price: | $6.50
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| Warrants: | For 192,308 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $7.15
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| AIRs: | For up to $15 million in additional debentures
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| AIRs expiration: | Nine months after registration statement is effective
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| Call: | May redeem debentures at 125% of face value plus interest if company conducts financing at a price less than the conversion price
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| Settlement date: | July 12
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| Stock price: | $17.90 at close July 12
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