By Abigail W. Adams
Portland, Me., Feb. 27 – Great Elm Capital Group Inc. placed $30 million in 5% convertible PIK notes due 2030 with a group of investors that included its largest shareholders, funds managed by Imperial Capital Asset Management LLC, Northern Right Capital Management LP, and members of a large alternative asset manager investing as individuals, according to a company news release.
Interest on the notes will be payable in kind or in cash, at the company’s option. The notes may be converted at $3.4722 per share.
The company has the right to force the conversion of the notes subject to certain conditions, according to the press release.
Proceeds will be used for general corporate purposes, including future acquisitions. The company has made progress on a pipeline of acquisition opportunities that it intends to pursue, according to the release.
Great Elm is a Waltham, Mass-based holding company operating in operating companies, investment management and real estate.
| Issuer: | Great Elm Capital Group Inc.
|
| Securities: | Convertible PIK notes
|
| Amount: | $30 million
|
| Maturity: | 2030
|
| Coupon: | 5%
|
| Conversion price: | $3.4722
|
| Pricing date: | Feb. 27
|
| Distribution: | Private Placement
|
| Stock symbol: | Nasdaq: GEC
|
| Stock price: | $2.92 at market close Feb. 27
|
| Market capitalization: | $73.21 million
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