By Sheri Kasprzak
New York, Dec. 18 - MSGI Security Solutions, Inc. completed a $2 million private placement with a group of institutional investors.
The investors, based in New York and San Francisco, bought callable secured convertible notes due Dec. 13, 2009. The 6% notes are convertible into common shares at 75% of the average of the three lowest closing prices over a 20-day period before conversion, subject to a $0.50 floor.
The investors also received warrants for 3 million shares, exercisable at $1.00 each.
MSGI may prepay the notes at 130% of the principal being prepaid plus interest as long as its stock is trading at or below $1.0417 per share.
HC Wainwright & Co. was the placement agent.
Also, as part of the company's restructuring effort, MSGI amended terms of existing notes to waive defaults and extend the maturity date of all outstanding notes to Dec. 13, 2009.
New York-based MSGI develops security solutions used by commercial and government organizations.
| Issuer: | MSGI Security Solutions, Inc.
|
| Issue: | Callable secured convertible notes
|
| Amount: | $2 million
|
| Maturity: | Dec. 13, 2009
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | 75% of the average of three lowest closing prices over 20 days, $0.50 floor
|
| Call: | May be prepaid at 130% of principal plus interest if stock trades at or below $1.0417 per share
|
| Warrants: | For 3 million shares
|
| Warrant strike price: | $1.00
|
| Placement agent: | HC Wainwright & Co.
|
| Settlement date: | Dec. 13
|
| Stock symbol: | Pink Sheets: MSGI
|
| Stock price: | $1.15 at close Dec. 13
|
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