By Sheri Kasprzak
New York, Oct. 18 - ATS Medical, Inc. completed a second closing of its previously announced private placement of 6% convertible notes for $3.4 million, bringing to $22.4 million the total proceeds raised in the offering.
The notes mature Oct. 15, 2025 and are convertible into common shares at $4.20 each, a 12% premium to the company's closing stock price of $3.75 on Oct. 6.
ATS may redeem the notes at any time after Oct. 20, 2008 at par plus interest, and the company may repurchase the notes at par plus interest on Oct. 15, 2010, 2015 and 2020.
The investors also received warrants for 204,000 shares exercisable at $4.40 each for five years.
On Oct. 7, ATS completed a $19 million offering of the notes under the same terms.
Piper Jaffray & Co. was the placement agent.
Proceeds will be used for working capital, capital expenditures and potential acquisitions.
Based in Minneapolis, ATS manufactures technologies and devices used in cardiac surgery.
| Issuer: | ATS Medical, Inc.
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| Issue: | Convertible notes
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| Amount: | $3.4 million
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| Maturity: | Oct. 15, 2025
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion price: | $4.20
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| Call: | May be redeemed after Oct. 20, 2008 at par plus interest; may be repurchased at par plus interest in 2010, 2015 and 2020.
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| Warrants: | For 204,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $4.40
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| Placement agent: | Piper Jaffray & Co.
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| Settlement date: | Oct. 14
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| Stock price: | $3.16 at close Oct. 14
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