By Sheri Kasprzak
New York, June 15 - MedicalCV, Inc. settled a $4.5 million private placement of senior secured debt with warrants.
The 11% notes have a three-year term and include warrants equal to 60% of the principal amount invested divided by $4.00.
The five-year warrants are exercisable at $4.00 each.
The notes may be prepaid at an 8% premium in the first year, a 6% premium in the second year and a 3% premium in the third year.
The company, connected to the offering, agreed to not issue any additional 11% debt.
Of the proceeds, $2 million comes from the exercise of an option by Whitebox Advisors, LLC from an April 2007 private placement of notes.
Proceeds will be used for working capital.
Based in Inver Grove Heights, Minn., MedicalCV develops technologies for cardiac tissue ablation used in open-heart surgery.
| Issuer: | MedicalCV, Inc.
|
| Issue: | Senior secured debt
|
| Amount: | $4.5 million
|
| Maturity: | Three years
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Warrants: | Equal to 60% of the principal issued divided by $4.00
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.00
|
| Investors: | Whitebox Advisors, LLC (for $2 million)
|
| Settlement date: | June 15
|
| Stock symbol: | OTCBB: MCVI
|
| Stock price: | $5.35 at close June 15
|
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