By Sheri Kasprzak
New York, Dec. 19 - Tarpon Industries, Inc. has revealed the details of its previously announced $6 million private placement of a convertible note.
The three-year note was purchased by Laurus Master Fund, Ltd. and bears interest at Prime plus 200 basis points, subject to an 8% floor.
The note is initially convertible into common shares at $3.27 each and matures Dec. 13, 2008.
The investor also received warrants for 390,000 shares, exercisable at $3.81 each for seven years.
Proceeds will be used for its acquisition of Bolton Steel Tube Co. and for working capital.
Based in Marysville, Mich., Tarpon manufactures structural and mechanical steel tubing and engineered steel storage rack systems.
| Issuer: | Tarpon Industries, Inc.
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| Issue: | Convertible note
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| Amount: | $6 million
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| Maturity: | Dec. 13, 2008
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| Coupon: | Prime plus 200 basis points, 8% floor
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| Conversion price: | $3.27
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| Warrants: | For 390,000 shares
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| Warrant expiration: | Seven years
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| Warrant strike price: | $3.81
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| Investor: | Laurus Master Fund, Ltd.
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| Settlement date: | Dec. 14
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| Stock price: | $2.85 at close Dec. 14
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