By LLuvia Mares
New York, Sept. 12 - Origen Financial, Inc. completed a $15 million secured financing agreement.
The financing consists of a $10 million secured note and a $5 million convertible secured note, each bearing interest at 8%. Both are due Sept. 11, 2008. The term of each note may be extended up to four months with payment of additional fees.
The $5 million note may be converted into shares of the company's common stock at a conversion price of $6.24 per share.
The company also issued a five-year warrant to the lender to purchase 500,000 shares of common stock at an exercise price of $6.16 per share.
Southfield, Mich.-based Origen is a real estate investment trust that originates and services manufactured housing loans.
| Issuer: | Origen Financial, Inc.
|
| Issue: | Notes
|
| Amount: | $15 million
|
| Maturity: | Sept. 11, 2008 but may be extended up to four months
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $6.24 (for $5 million)
|
| Warrants: | For 500,000 common shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $6.16
|
| Settlement date: | Sept. 12
|
| Stock symbol: | Nasdaq: ORGN
|
| Stock price: | $6.16 at close Sept. 11
|
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