By Sheri Kasprzak
New York, Sept. 11 - Orion Healthcorp, Inc. wrapped a $3.35 million private placement of senior unsecured subordinated promissory notes with Phoenix Life Insurance Co.
The 12% notes are due 2011.
The investors received warrants equal to 1.117% of the outstanding class A stock at the date of issuance. The five-year warrants are exercisable at $0.01 each.
Proceeds will be used to finance a portion of the company's acquisition of Rand Medical Billing Inc. and On Line Alternatives, Inc.
Under the terms of the Rand acquisition, Orion paid $9,365,333 to buy all of Rand's outstanding stock. Under the terms of the On Line acquisition, Orion paid $3,310,924 for all of On Line's shares.
In other news, Orion bought back all 1,722,983 class B shares held by Brantley Capital Corp. for $482,435.
Atlanta-based Orion provides business services to physicians.
| Issuer: | Orion Healthcorp, Inc.
|
| Issue: | Senior unsecured subordinated promissory notes
|
| Amount: | $3.35 million
|
| Maturity: | 2011
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | Equal to 1.117% of the company's outstanding class A common stock at issuance
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.01
|
| Investor: | Phoenix Life Insurance Co.
|
| Settlement date: | Sept. 8
|
| Stock symbol: | Amex: ONH
|
| Stock price: | $0.25 at close Sept. 8
|
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