Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Magnequench Inc. > News item |
Magnequench secures $50 million from private placement of convertibles
By Sheri Kasprzak
Atlanta, June 7 - Magnequench Inc. said it and merger partner AMR Technologies Inc. have raised $50 million in a private placement of convertible debentures.
The debenture offering was placed through agent GMP Securities Ltd.
The two companies also plan to raise additional funds through the issue of subscription receipts.
Magnequench and AMR have also received a term sheet for $60 million in senior term debt from a Hong Kong-based bank.
Other details of the convertible debenture and term debt financings could not be determined Tuesday.
Magnequench and AMR signed an agreement Tuesday to merge, contingent upon shareholder approval and the closing of the debenture placement, the equity offering and the senior term debt financing.
Under the terms of the merger, Magnequench's shareholders will receive 26.9 million shares, or 62%, of AMR's stock and AMR's shareholders will get 16.7 million shares, or 38%, of AMR.
The combined companies will produce neodymium-iron-boron powders, rare earths and zirconium-derived materials used in electronic devices like computers, personal video recorders and mobile phones.
Based in Toronto, AMR produces advanced specialty rare earth materials, and Indianapolis-based Magnequench produces neodymium-iron-boron powders.
The proceeds from the debentures, debt financing and the equity offering will be used to refinance Magnequench's $155 million senior debt.
AMR's stock closed unchanged at $2.16 on Tuesday.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.