By Devika Patel
Knoxville, Tenn., Nov. 30 - mktg, inc. plans a $5 million private placement of senior secured notes due 2012 and series D convertible participating preferred stock, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal priced Wednesday.
The company is selling $2.5 million in 12.5% notes.
It also will sell $2.5 million in preferreds at $1.00 apiece, which will initially be convertible into 5,321,922 common shares at a conversion price of $0.47. The preferreds may be put after six years.
Investors also will receive 2,456,272 warrants, which are exercisable for six years.
Settlement is expected Dec. 10.
Proceeds will be used for debt repayment and for general working capital purposes.
The marketing company is based in New York.
| Issuer: | mktg, inc.
|
| Issue: | Senior secured notes, series D convertible participating preferred stock
|
| Amount: | $5 million
|
| Warrants: | 2,456,272
|
| Warrant expiration: | Six years
|
| Pricing date: | Nov. 25
|
| Settlement date: | Dec. 10
|
| Stock symbol: | Nasdaq: CMKG
|
| Stock price: | $0.90 at close Nov. 25
|
| Market capitalization: | $7.08 million
|
|
|
| Notes
|
| Amount: | $2.5 million
|
| Maturity: | 2012
|
| Coupon: | 12.5%
|
| Price: | Par
|
| Yield: | 12.5%
|
|
|
| Preferreds
|
| Amount: | $2.5 million
|
| Price: | $1.00
|
| Conversion price: | $0.47
|
| Conversion ratio: | Into 5,321,922 shares
|
| Put: | After six years
|
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