By Sheri Kasprzak
New York, Jan. 6 - MRU Holdings, Inc. released the details of its previously announced $25 million private placement of series B convertible preferred stock.
The company has received agreements for 6,578,947 shares of the preferreds at $3.80 each for Battery Ventures VII, LP and Merrill Lynch Private Equity Partners.
The 6% preferreds are convertible into common shares at $3.80 each.
The investors will also receive warrants for 2,138,158 shares of series B preferred stock, exercisable at $3.80 each for three years.
The deal is expected to close Feb. 10.
Proceeds will be used for the company's growth strategy in the student loan market.
Based in New York, MRU is a finance company that provides loans to students for higher education.
Issuer: | MRU Holdings, Inc.
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Issue: | Series B convertible preferred stock
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Amount: | $25 million
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Shares: | 6,578,947
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Price: | $3.80
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Dividends: | 6%
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Conversion price: | $3.80
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Conversion ratio: | On a one-for-one basis
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Warrants: | For 2,138,158 series B preferreds
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Warrant expiration: | Three years
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Warrant strike price: | $3.80
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Investors: | Battery Ventures VII, LP and Merrill Lynch Private Equity Partners
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Announcement date: | Jan. 6
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Settlement date: | Feb. 10
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Stock price: | $4.90 at close Jan. 6
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