By Sheri Kasprzak
New York, Oct. 4 - Bell Microproducts Inc. concluded a $35 million private placement of senior subordinated notes with warrants as part of an asset-purchase agreement with NewProSys Corp.
The 9% notes were purchased by Teachers' Retirement System of Alabama and Employees' Retirement System of Alabama and are due Aug. 1, 2013.
The investor received warrants for 125,000 shares, exercisable at $5.15 each for five years.
Under the terms of the asset-purchase agreement, Bell acquired an interest in the Atlanta-based ProSys Information Systems for $32.5 million in cash and 1,724,374 shares of Bell valued at $8.5 million.
Based in San Jose, Calif., Bell distributes storage and computing technologies.
| Issuer: | Bell Microproducts Inc.
|
| Issue: | Senior subordinated notes
|
| Amount: | $35 million
|
| Maturity: | Aug. 1, 2013
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Warrants: | For 125,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.15
|
| Investor: | Teachers' Retirement System of Alabama, Employees' Retirement System of Alabama
|
| Settlement date: | Oct. 2
|
| Stock symbol: | Nasdaq: BELM
|
| Stock price: | $5.21 at close Oct. 2
|
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