Deal sells five-year debt with warrants for 3.6 million common shares
By Devika Patel
Knoxville, Tenn., Oct. 17 – Towerstream Corp. said it settled a $35 million sale of debt with affiliates of Melody Capital Partners, LP.
The 12% debt matures on Oct. 16, 2019.
Melody also received warrants for 3.6 million shares, with 1.2 million of the warrants exercisable at $0.01 and 2.4 million exercisable at $1.26. The strike price of $1.26 is a 12.5% premium to the Oct. 16 closing share price of $1.12.
Based in Middletown, R.I., Towerstream provides broadband services.
| Issuer: | Towerstream Corp.
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| Issue: | Debt
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| Amount: | $35 million
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| Maturity: | Oct. 16, 2019
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| Coupon: | 12%
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| Warrants: | For 3.6 million shares
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| Warrant strike price: | $0.01 (for 1.2 million warrants), $1.26 (for 2.4 million warrants)
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| Investor: | Melody Capital Partners, LP
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| Settlement date: | Oct. 17
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| Stock symbol: | Nasdaq: TWER
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| Stock price: | $1.12 at close Oct. 16
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| Market capitalization: | $79.97 million
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