By Sheri Kasprzak
New York, Aug. 16 - Adam, Inc. settled a $5 million private placement of convertible notes as part of its acquisition of OnlineBenefits, Inc.
The offering was part of a financing agreement with CapitalSource Finance LLC that also included a $20 million term loan and a $2 million revolver.
The convertible note is due August 2011 and bears interest at the greater of Libor plus 250 basis points or Prime rate plus 125 bps. The note is convertible into a total of 785,279 common shares.
The revolver is due August 2011 and bears interest at the greater of Libor plus 400 bps or Prime rate plus 275 bps.
The term loan matures June 2011 and bears interest at the greater of Libor plus 400 bps or Prime rate plus 275 bps.
Under the terms of the acquisition, Adam bought the outstanding shares of OnlineBenefits for $32.5 million, comprised of $28 million in cash, $1.5 million in debt and 528,681 common shares with a value of $3 million.
Based in Atlanta, Adam produces software used by the healthcare sector.
Issuer: | Adam, Inc.
|
Issue: | Convertible notes
|
Amount: | $5 million
|
Maturity: | August 2011
|
Coupon: | The greater or Libor plus 250 basis points or Prime rate plus 125 bps
|
Conversion ratio: | Into 785,279 shares
|
Warrants: | No
|
Investor: | CapitalSource Finance LLC
|
Settlement date: | Aug. 14
|
Stock symbol: | Nasdaq: ADAM
|
Stock price: | $5.26 at close Aug. 14
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.