Deal will help company acquire two nursing home facilities in Alabama
By Devika Patel
Knoxville, Tenn., Oct. 27 - AdCare Health Systems, Inc. said it sold unsecured subordinated convertible notes in a private placement. The company sold $18.7 million of promissory notes in a previously announced placement that settled Oct. 6.
The $11.05 million of 10% notes in the latest placement matures in October 2013 and initially converts to common stock at $4.13 per share. The conversion price is a 15.04% premium to the Oct. 26 closing share price of $3.59 and 115% of the 15-day volume-weighted average price of AdCare's common stock prior to closing. The initial conversion price is also equal to an initial conversion rate of 242.13 shares per $1,000 of the notes.
AdCare may redeem the convertibles at par after six months under certain conditions.
C.K. Cooper & Co. was the agent for the placement.
Proceeds will be used for general corporate purposes, including the acquisition of two nursing home facilities in Alabama, and for general and administrative expenses.
Springfield, Ohio-based AdCare is a developer, owner and manager of retirement communities.
| Issuer: | AdCare Health Systems, Inc.
|
| Issue: | Unsecured subordinated convertible notes
|
| Amount: | $11.05 million
|
| Maturity: | October 2013
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $4.13
|
| Conversion ratio: | 242.13 shares per $1,000 of notes
|
| Conversion premium: | 15.04%
|
| Call: | After six months
|
| Warrants: | No
|
| Agent: | C.K. Cooper & Co.
|
| Settlement date: | Oct. 27
|
| Stock symbol: | NYSE: ADK
|
| Stock price: | $3.59 at close Oct. 26
|
| Market capitalization: | $28.58 million
|
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