By Kenneth Lim
Boston, Nov. 10 - Medis Technologies Ltd. on Thursday priced its delayed $50 million of series A perpetual convertible preferred stock at the cheap end of talk, at a dividend of 7.25% and an initial conversion premium of 28%.
The deal, which was delayed a week, was talked at a dividend of 6.5% to 7.25% and an initial conversion premium of 28% to 32%. The 5,000 preferred shares were offered at par of $10,000 apiece. There was a concurrent offering of 1.5 million shares of Medis common stock to facilitate a stock borrow facility.
There is an over-allotment option for a further $7.5 million, or 750 preferred shares, in the convertible deal.
Citigroup was the bookrunner for the Rule 144A offering.
The preferreds are non-callable for the first three years, after which they may be called subject to a 150% hurdle. There are no puts.
The convertibles have 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 would be used for developing and commercializing products, which may include capacity expansion, and for general purposes.
| Issuer: | Medis Technologies Ltd.
|
| Issue: | Convertible preferred stock
|
| Bookrunner: | Citigroup
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Maturity: | Perpetual
|
| Coupon: | 7.25%
|
| Price: | Par of $10,000
|
| Yield: | 7.25%
|
| Conversion premium: | 28%
|
| Conversion price: | $28.80
|
| Conversion ratio: | 347.2222
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for three years, thereafter callable subject to 150% hurdle
|
| Puts: | None
|
| Price talk: | 6.5%-7.25%, up 28%-32%
|
| Pricing date: | Nov. 9 after the close
|
| Distribution: | Rule 144A
|
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