By Sheri Kasprzak
Atlanta, Nov. 9 - Medialink Worldwide Inc. said Tuesday morning it has received definitive agreements from institutional investors to purchase $5 million of subordinated debentures.
The five-year debentures bear a variable interest rate at the greater of 7% or Libor plus 450 basis points.
The debentures are convertible into stock at a conversion price of $4.05, a premium of 23% over Medialink's closing price on Nov. 8.
Medialink will also issue warrants for 582,929 shares at $3.99 for five years as part of the offering.
Based in New York, Medialink is a multimedia communication services company. It plans to use the funds from the offering to grow its television tracking and video asset management unit, Teletrax. Medialink will also use the proceeds for working capital and to reduce its bank debt.
| Issuer: | Medialink Worldwide Inc.
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| Issue: | Convertible subordinated debentures
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| Amount: | $5 million
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| Maturity: | Five years
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| Coupon: | The greater of 7% or Libor plus 450 bps
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| Conversion premium: | 23%
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| Conversion price: | $4.05
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| Warrants: | For 582,929 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $3.99
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| Announcement date: | Nov. 9
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| Pricing date: | Nov. 8
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| Stock price: | $3.29 at close Nov. 8
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| Stock price: | $3.00 at close Nov. 9
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