Company sells 6% three-year subordinated convertibles with warrants
By Devika Patel
Knoxville, Tenn., March 11 - Baxano Surgical, Inc. said it will raise about $10 million in a private placement of subordinated convertible debentures. Piper Jaffray & Co. is the lead agent, and Stifel, Nicolaus and Co. is the co-agent.
The 6% debenture is initially convertible into common shares at $1.06 per share. The note matures on March 11, 2017.
Investors also will receive warrants for 9,428,000 common shares. Each warrant is exercisable at $1.19.
The strike price is a 10.53% discount to the March 10 closing share price of $1.33. The conversion price is a 20.3% discount to that price.
The medical device company is based in Raleigh, N.C.
| Issuer: | Baxano Surgical, Inc.
|
| Issue: | Subordinated convertible debentures
|
| Amount: | $10 million (approximate)
|
| Maturity: | March 11, 2017
|
| Coupon: | 6%
|
| Conversion price: | $1.06
|
| Warrants: | For 9,428,000 shares
|
| Warrant strike price: | $1.19
|
| Agents: | Piper Jaffray & Co. (lead), Stifel, Nicolaus and Co. (co-agent)
|
| Settlement date: | March 11
|
| Stock symbol: | Nasdaq: BAXS
|
| Stock price: | $1.33 at close March 10
|
| Market capitalization: | $57.18 million
|
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