Medis to price $50 million perpetual convertible preferreds, talked at 6.5%-7.25%, up 28%-32%

By Kenneth Lim

Boston, Oct. 30 - Medis Technologies Ltd. plans to price on Thursday after the market closes $50 million of perpetual convertible preferred stock, talked at a dividend of 6.5% to 7.25% and an initial conversion premium of 28% to 32%.

The 5,000 preferred shares will be offered at par of $10,000 apiece. There is a concurrent shelf offering of up to 1.5 million shares of Medis common stock, which has yet to price.

There is an over-allotment option for a further $7.5 million, or 750 preferred shares, in the convertible deal.

Citigroup is the bookrunner for the Rule 144A offering.

The preferreds will be non-callable for the first three years, after which they may be called subject to a 150% hurdle. There will be no puts.

There is dividend and takeover protection.

Medis, a New York-based maker of fuel cell batteries used in consumer and military electronics, said the proceeds of the offering will be used for developing and commercializing products, which may include capacity expansion, and for general purposes.

© 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.