By Sheri Kasprzak
Atlanta, Jan. 13 - Modtech Holdings Inc. has set the conversion price on its previously announced $25 million senior secured convertible note and has also updated information on the warrants attached to the offering.
On Dec. 30, the company sold the 7% five-year note to Amphora Ltd., but the conversion price had not been set at that point. Now it has announced that the note is convertible into 2,873,564 shares at $8.70 each. The price represents 115% of the five-day trading average. The conversion price had an $8.61 floor.
The note also came with warrants for 229,886 shares, exercisable at $8.70 each for five years.
Rodman & Renshaw LLC was the placement agent in the deal.
Perris, Calif.-based Modtech, designs and manufactures modular buildings. The company will use $15 million of the proceeds to repay its revolving credit facility and for working capital and general corporate purposes. The remaining $10 million will be used to cash collateralize a letter of credit issued for the benefit of the note holder.
| Issuer: | Modtech Holdings Inc.
|
| Issue: | $25 million
|
| Maturity: | Five years
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $8.70
|
| Conversion ratio: | Into 2,873,564 common shares
|
| Warrants: | For 229,886 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $8.70
|
| Placement agent: | Rodman & Renshaw LLC
|
| Investors: | Amphora Ltd.
|
| Settlement date: | Dec. 30
|
| Stock price: | $8.58 at close Dec. 30
|
|
|
© 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.
