By Sheri Kasprzak
New York, Nov. 8 - Orion Ethanol, Inc. revealed the terms on its previously announced $12.48 million private placement of senior convertible notes.
The 8% notes are due Oct. 31, 2008. The notes are convertible into common shares at $1.00 each after May 1, 2007.
Interest steps up to 9% from April 1, 2007 and 1% quarterly after that until maturity on conversion.
Proceeds will be used for required deposits with the company's primary engineering, procurement and construction contractor, Lurgi PSI, Inc., to construct its Enid, Okla., and Shattuck, Okla., ethanol plants.
Global Hunter Securities LLC was the placement agent.
Orion, based in Pratt, Kan., expects to begin producing ethanol in July 2007. It is constructing ethanol plants in Oklahoma. Orion had previously been known as RTO Holdings, Inc.
| Issuer: | Orion Ethanol, Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $12.48 million
|
| Maturity: | Oct. 31, 2008
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $1.00
|
| Warrants: | No
|
| Placement agent: | Global Hunter Securities LLC
|
| Settlement date: | Nov. 3
|
| Stock symbol: | OTCBB: OEHL
|
| Stock price: | $21.00 at close Nov. 3
|
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