By Laura Lutz
Des Moines, Jan. 3 - Telanetix, Inc. arranged a private placement of discounted convertible debentures with four institutional investors for $3.65 million.
The 6% debentures are priced at 87.5 and mature on Dec. 31, 2008. The initial conversion price is $1.54
Interest is payable quarterly. Monthly redemption payments equal to one-eighteenth of the principal amount begin July 1, 2007 and continue through maturity.
The company may pay interest and redemption payments in cash or in common stock at a price equal to the lesser of the conversion price and 85% of the volume-weighted average price of the company's stock for the 10 trading days before the payment date.
The company may redeem the debentures for 120% of the principal amount of the debenture plus accrued interest.
The company may force conversion if the volume-weighted average price of the common shares is more than double the conversion price for 20 trading days out of 30 trading days.
The investors also received 1,543,597 warrants exercisable at $1.69 each for five years.
Telanetix is a video conferencing company based in San Diego.
| Issuer: | Telanetix, Inc.
|
| Issue: | Discounted convertible debentures
|
| Amount: | $3.65 million
|
| Maturity: | Dec. 31, 2008
|
| Coupon: | 6%
|
| Price: | 87.5
|
| Conversion price: | $1.54
|
| Call: | Current at 120%
|
| Warrants: | For 1,543,597 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.69
|
| Settlement date: | Dec. 28
|
| Stock symbol: | OTCBB: TNXI
|
| Stock price: | $1.48 at close Jan. 3
|
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