By James McCandless
San Antonio, Oct. 11 – Medical Transcription Billing Corp. is placing another $15 million of its $25-par 11% series A cumulative redeemable perpetual preferred stock in a best-efforts offering, according to a press release.
H.C. Wainwright & Co., Boenning & Scattergood and Chapin Davis Investments are the placement agents.
The preferreds will be sold at par at $25.00 per share.
The existing preferreds (Nasdaq: MTBCP) were down $2.43 in early trading to $25.37.
Dividends are payable on the 15th day of each month.
The preferreds are redeemable on or after Nov. 4, 2020 at par.
Medical Transcription plans to use the proceeds for growth initiatives, including potential future acquisitions, as well as working capital and for general corporate purposes.
The company has previously issued multiple tranches of the 11% preferred shares. After the current offering, there will be 3,136,289 shares, or about $82.6 million, of the preferreds outstanding if the maximum number of shares are sold.
Medical Transcription is a Somerset, N.J.-based health care information technology company.
| Issuer: | Medical Transcription Billing Corp.
|
| Description: | Series A cumulative redeemable perpetual preferred stock
|
| Amount: | $15 million, or 600,000 shares
|
| Maturity: | Perpetual
|
| Placement agents: | H.C. Wainwright & Co. (lead), Boenning & Scattergood and Chapin Davis Investments
|
| Dividend: | 11%, payable monthly
|
| Price: | Par of $25.00
|
| Yield: | 11%
|
| Call: | On or after Nov. 4, 2020 at par
|
| Pricing date: | Oct. 10
|
| Settlement date: | Oct. 15
|
| Distribution: | SEC registered
|
| Listing: | Nasdaq: MTBCP
|
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