By Sheri Kasprzak
New York, Feb. 14 - MRU Holdings, Inc. said it has completed a private placement of series B convertible preferreds for $25 million.
The company issued 6,578,948 shares of the preferreds at $3.80 each to Battery Ventures VII, LP and Merrill Lynch Private Equity Partners.
The 6% preferreds are convertible into common shares at $3.80 each.
The investors received warrants for 2,138,158 shares of series B preferred stock at $3.80 each for three years.
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.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $25 million
|
| Shares: | 6,578,948
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| Price: | $3.80
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| Dividends: | 6%
|
| Conversion price: | $3.80
|
| Conversion ratio: | On a one-for-one basis
|
| Warrants: | For 2,138,158 series B preferreds
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $3.80
|
| Investors: | Battery Ventures VII, LP and Merrill Lynch Private Equity Partners
|
| Announcement date: | Jan. 6
|
| Settlement date: | Feb. 13
|
| Stock symbol: | OTCBB: MHOI
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| Stock price: | $4.90 at close Jan. 6
|
| Stock price: | $4.80 at close Feb. 13
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