Investor also gets common shares; proceeds for working capital
By Devika Patel
Knoxville, Tenn., Aug. 27 - Bakers Footwear Group, Inc. raised $5 million in a private placement of 11% unsecured subordinated debentures on Aug. 26, according to an 8-K filed Friday with the Securities and Exchange Commission.
The debentures mature on Aug. 31, 2020.
As additional consideration, the investor also received 1,844,860 common shares.
Proceeds will be used for working capital.
"We are pleased to expand our 20 year partnership with Steve Madden, one of our largest suppliers, to include a financial investment," chief executive officer Peter Edison said in a press release. "This investment has no financial covenants or sourcing, management, or governance conditions of any kind and represents a strong vote of confidence in our business.
"Bakers has had a business association with Steve from the day he started his company, and we look forward to continuing our excellent and enduring relationship with him and his team."
St. Louis-based Bakers is a footwear retailer.
| Issuer: | Bakers Footwear Group, Inc.
|
| Issue: | Unsecured subordinated debenture, 1,844,860 common shares
|
| Amount: | $5 million
|
| Warrants: | No
|
| Settlement date: | Aug. 26
|
| Stock symbol: | OTCBB: BKRS
|
| Stock price: | $0.83 at close Aug. 26
|
| Market capitalization: | $6.13 million
|
|
|
| Debentures
|
| Maturity: | Aug. 31, 2020
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
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