Agent Cantone Research helps sell unsecured subordinated convertibles
By Devika Patel
Knoxville, Tenn., May 5 - AdCare Health Systems, Inc. sold $1.78 million more of unsecured subordinated convertible notes as part of a $3.9 million private placement on April 29, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company previously sold $2.12 million of the notes on March 31.
The 10% convertibles mature on March 31, 2014 and initially convert to common stock at 115% of the lesser of the volume-weighted average prices of the stock for the 10-trading-day periods preceding and following the filing of the company's 2010 10-K, with a floor of $4.13 per share, which is a 17.4% discount to the March 30 closing share price of $5.00.
AdCare may redeem the convertibles at par after six months if its stock trades at or above 200% of the conversion price for 20 out of 30 consecutive trading days, with an average daily trading volume of over 50,000 shares. The notes may be put at 110 if a change of control occurs.
Cantone Research, Inc. was the agent.
Springfield, Ohio-based AdCare is a developer, owner and manager of retirement communities.
| Issuer: | AdCare Health Systems, Inc.
|
| Issue: | Unsecured subordinated convertible notes, promissory note
|
| Amount: | $3,898,000
|
| Maturity: | March 31, 2014
|
| Coupon: | 10%
|
| Conversion price: | $4.13 (floor)
|
| Call: | After six months
|
| Warrants: | No
|
| Agent: | Cantone Research, Inc.
|
| Settlement date: | March 31 (for $2,115,000), April 29 (for $1,783,000)
|
| Stock symbol: | NYSE: ADK
|
| Stock price: | $4.95 at close March 31
|
| Market capitalization: | $40.32 million
|
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