By Sheri Kasprzak
Atlanta, June 29 - The Beard Co. has arranged a private placement for $2,004,102.
The notes bear interest at 12% annually and mature on Aug. 31, 2009.
The notes are convertible into common shares at a price determined by the weighted average stock price for 90 days before each subscription is received. There is a $2.25 floor on the conversion price.
The company may close the offering in more than one stage upon the acceptance of at least $200,000 or by Aug. 31.
Beard may force conversion of the notes after Feb. 28, 2007, if the weighted average stock price is more than twice the conversion price for more than 60 consecutive trading days.
The company said it will also allow the holders of its outstanding 10% notes to tender their notes in exchange for the 12% notes.
Based in Oklahoma City, Beard is a coal reclamation company.
| Issuer: | The Beard Co.
|
| Issue: | Convertible notes
|
| Amount: | $2,004,102
|
| Maturity: | Aug. 31, 2009
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $2.25 floor, price based upon the weighted average stock price 90 days before each subscription is received
|
| Call: | May force conversion after Feb. 28, 2007, if weighted average stock price is more than twice conversion price for 60 trading days or more
|
| Warrants: | No
|
| Pricing date: | June 29
|
| Stock price: | $2.50 at close June 29
|
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