By Laura Lutz
Des Moines, Nov. 2 - Osiris Therapeutics, Inc. settled a private placement of convertible promissory notes for $20 million on Oct. 30, according to an 8-K filing with the Securities and Exchange Commission.
The 10% convertibles were purchased by several Swedish investors.
The notes mature on April 30, 2009. They are convertible any time after Feb. 9 at a conversion price of $18.00. The notes will automatically convert if, any time after Feb. 9, the closing price of the company's common stock is at least $25.00 for 10 consecutive trading days.
The company may redeem the notes at any time upon 30 days' notice to the holder.
Interest will be paid semi-annually.
Proceeds have been used to repay a $20.6 million 6% convertible promissory note previously issued by the company to a foreign investor. That note had a maturity date of Nov. 28, 2008 and a premium payment between 9% and 27%, depending on the circumstances of repayment or redemption.
The company expects repayment of the prior note to save about $3.2 million, compared to the costs if the note had remained outstanding to maturity.
Friedli Corporate Finance, Inc. acted as agent for the placement. Peter Friedli, chairman of Osiris's board of directors and its largest stockholder, is the president and sole owner of Friedli Corporate Finance. Peter Friedli subscribed for $4.5 million in the placement.
New Venturetec, Inc., a Swiss company of which Friedli is president, purchased $4 million of the notes.
Baltimore-based Osiris develops cellular therapies based on adult bone marrow stem cells.
| Issuer: | Osiris Therapeutics, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $20 million
|
| Maturity: | April 30, 2009
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $18.00
|
| Warrants: | No
|
| Settlement date: | Oct. 30
|
| Stock symbol: | Nasdaq: OSIR
|
| Stock price: | $15.30 at close Oct. 30
|
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