Deal sells 9% senior secured debentures, warrants for 5,778,750 shares
By Devika Patel
Knoxville, Tenn., Aug. 16 - OCZ Technology Group, Inc. raised $13.1 million in a private placement of 9% senior secured convertible debentures on Aug. 13, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on Aug. 12.
The one-year debentures are initially convertible into common shares at $1.70 per share. They may be redeemed.
Investors also received warrants for 5,778,750 shares, with each warrant exercisable at $0.75 until Aug. 13, 2018.
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 Sunnyvale, Calif.-based producer of computer memory and components.
| Issuer: | OCZ Technology Group, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $13,098,500
|
| Maturity: | Aug. 13, 2014
|
| Coupon: | 9%
|
| Conversion price: | $1.70
|
| Call: | Yes
|
| Warrants: | For 5,778,750 shares
|
| Warrant expiration: | Aug. 13, 2018
|
| Warrant strike price: | $0.75
|
| Pricing date: | Aug. 12
|
| Settlement date: | Aug. 13
|
| Stock symbol: | Nasdaq: OCZ
|
| Stock price: | $1.91 at close Aug. 12
|
| Market capitalization: | $97.76 million
|
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