8.5% series A convertible preferreds were sold to group of investors
By Devika Patel
Knoxville, Tenn., March 3 – Merge Healthcare Inc. completed a $50 million private placement of 8.5% series A convertible preferred stock on Feb. 25, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 50,000 preferreds at $1,000 apiece. Each preferred is initially convertible into 241.55 common shares at $4.14, a 4.61% discount to the Feb. 24 closing share price of $4.34. The company may force conversion after one year and holders may put the preferreds.
Guggenheim Private Debt Fund Note Issuer, LLC, NZC Guggenheim Fund LLC, Maverick Enterprises, Inc. and Verger Capital Fund LLC were the investors.
Merge Healthcare is a Chicago-based provider of software for the storage and sharing of medical images.
| Issuer: | Merge Healthcare Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $50 million
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| Preferreds: | 50,000
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| Price: | $1,000
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| Dividends: | 8.5%
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| Conversion price: | $4.14
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| Call: | After one year
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| Put: | Yes
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| Warrants: | No
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| Investors: | Guggenheim Private Debt Fund Note Issuer, LLC, NZC Guggenheim Fund LLC, Maverick Enterprises, Inc. and Verger Capital Fund LLC
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| Settlement date: | Feb. 25
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| Stock symbol: | Nasdaq: MRGE
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| Stock price: | $4.34 at close Feb. 24
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| Market capitalization: | $433.28 million
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