Company will sell senior secured debentures with 75% warrant coverage
By Devika Patel
Knoxville, Tenn., Aug. 13 - OCZ Technology Group, Inc. said it will raise about $13 million in a private placement of 9% senior secured convertible debentures.
The debentures mature in one year and are initially convertible into common shares at $1.70 per share.
Investors also will receive 75% warrant coverage, with each warrant exercisable at $0.75 for five years.
The conversion price reflects an 11% discount to the Aug. 12 closing share price of $1.91. The strike price is a 60.73% discount to that price.
OCZ is a San Jose, Calif.-based producer of computer memory and components.
| Issuer: | OCZ Technology Group, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $13 million (approximate)
|
| Maturity: | One year
|
| Coupon: | 9%
|
| Conversion price: | $1.70
|
| Warrants: | 75% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.75
|
| Pricing date: | Aug. 13
|
| Stock symbol: | Nasdaq: OCZ
|
| Stock price: | $1.91 at close Aug. 12
|
| Market capitalization: | $113.66 million
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