Terremark closes $14 million private placement of notes; MangoSoft raises $1.2 million for lawsuit costs

By Sheri Kasprzak

New York, Jan. 11 - Heading up light private placement action Thursday was a $14 million offering of convertible and non-convertible notes from Terremark Worldwide, Inc.

Terremark sold $4 million in senior subordinated convertible notes and $10 million in senior subordinated secured notes to Credit Suisse International and Credit Suisse, Cayman Island Branch, respectively.

The convertible notes bear interest at 0.5% annually for the first two years and at 1.5% annually thereafter through maturity - June 30, 2009. Interest is paid in kind.

The notes are convertible at $8.14 each, a 16.7% premium to the company's $6.97 closing stock price on Jan. 4, the day before the deal closed.

The senior subordinated secured notes are due June 30, 2009 and bear interest at the Eurodollar rate plus 800 basis points annually, increasing to the Eurodollar rate plus 900 bps through maturity after Jan. 1, 2009.

The company's stock climbed 4 cents on Thursday to close at $6.80 (Amex: TWW). On Jan. 5, when the deal closed, the stock gave up 23 cents to close at $6.74.

Miami-based Terremark provides data-housing space for corporate and government clients' internet and telecommunications equipment.

In the broader market Thursday, a record high for the Dow Jones Industrial Average led some sellsiders to believe that PIPE volume may be picking up soon.

"Rarely is it [volume] really active in the first month or so of the year," said one sellsider on Thursday afternoon. "I think given the stock market right now, there's a good chance volume will pick up later on, maybe in a few weeks."

The Dow picked up 72.82 on Thursday to end at 12,514.98 and the Nasdaq composite index gained 25.52 to close at 2,484.85. The Standard & Poor's 500 composite index climbed 8.97 to settle at 1,423.82.

Another sellsider, who is focused on the tech sector, said that sector will likely make a comeback in the first few months of this year.

"Tech is looking really strong right now and we're already seeing some activity," he noted.

MangoSoft's $1.2 million deal

Looking to specific tech action on Thursday, MangoSoft, Inc., which won a patent violation lawsuit filed against it by Oracle International Corp. last year, picked up $1.2 million from a private placement of its stock.

The funds from the deal will go to pay for costs related to the suit, according to a statement released Thursday afternoon by MangoSoft.

In the non-brokered placement, the company sold 2.4 million shares to current shareholders.

In October, MangoSoft won a summary judgment in U.S. District Court for the Northern District of California against Oracle International. The suit alleged that MangoSoft violated one of Oracle's patents.

The company's stock remained unmoved on Thursday at $0.65 (OTCBB: MGOF).

Located in Nashua, N.H., MangoSoft develops internet-enabling software for businesses.

AAA Energy plans offering

In the natural resources sector, AAA Energy, Inc. announced its plans to raise up to $1 million in an offering of convertible debentures.

The deal comes as oil prices gave up $2.14 Thursday to close the session at a 19-month low of $51.88 per barrel.

In the AAA Energy deal, the debentures will be convertible into units of one share and one warrant at $0.40 each, a 42.8% discount to the company's $0.70 closing stock price on Wednesday.

The warrants are exercisable at $0.60 each for two years.

The full terms of the debentures could not be determined by press time Thursday.

The company's stock closed unchanged at $0.70 Thursday (OTCBB: AAAE).

Based in Vancouver, B.C., AAA Energy is a mineral exploration company.

Serengeti plans C$5 million deal

Moving to Canadian offerings, Serengeti Resources Inc. priced a C$5 million non-brokered placement comprised of flow-through shares and units of one share and one half-share warrant.

The offering sent the company's stock soaring by 14.3%, or 11 cents, Thursday. The stock closed at C$0.88 (TSX Venture: SIR).

The deal includes up to 2,777,777 shares at C$0.90 each and up to 3.125 million units at C$0.80 each. The whole warrants from the units are exercisable at C$1.00 for one year.

Proceeds will be used for exploration and drilling on the company's properties in British Columbia and for working capital.

Vancouver, B.C.-based Serengeti is a mineral exploration company focused on copper-gold and molybdenum properties in British Columbia.

Strategic Nevada stock climbs

In secondary market action, Strategic Nevada Resources Corp.'s stock advanced Thursday, a day after the company priced two placements totaling C$6.255 million.

The stock gained 3 cents, or 3.61%, to close at C$0.86 (TSX Venture: SNS). On Wednesday, the company's stock dropped by 2.35%, or 2 cents, to end at C$0.83.

The placement includes a brokered and non-brokered portion. Pacific International Securities Inc. was the placement agent for the brokered part of the offering.

In both portions, the company plans to sell units of one share and one half-share warrant at C$0.75 each. The unit price is an 11.7% discount to the company's C$0.85 closing stock price on Tuesday.

Proceeds will be used for exploration and rehabilitation on the company's recently acquired Crescent Silver Mine property. The remainder will be used for working capital.

Vancouver, B.C.-based Strategic Nevada is a mineral exploration company.

Tri-Vision raises C$4 million

In other Canadian PIPE news, Tri-Vision International Ltd. closed a C$4,000,100 private placement of 3.077 million units.

The units of one share and one half-share warrant were sold at C$1.30 each.

Wellington West Capital Markets Inc. was the placement agent.

The whole warrant associated with the units are exercisable at C$1.60 for 18 months.

Proceeds will be used for working capital.

The company's stock gained 3 cents, or 2.22%, to close at C$1.38 (Toronto: TVL).

Toronto-based Tri-Vision is a holding company for Tri-Vision Electronics Inc. and Think Broadband Solutions Inc. Tri-Vision Electronics licenses V-chips used in televisions and Think Broadband distributes broadband services to corporations in Canada.

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