By Sheri Kasprzak
Atlanta, Nov. 10 - BroadVision Inc. said early Wednesday it has entered into an agreement for the private placement of up to $20 million of convertible debentures.
The company will issue $16 million of the debentures to five institutional investors, including Portside Growth & Opportunity Fund, SF Capital Partners Ltd., Manchester Securities Corp., Kings Road Investments Ltd. and Provident Premier Master Fund Ltd. The three-year debentures are convertible into common shares at $2.76 or a 15% premium.
The debentures bear interest at 6% and are repayable in either cash or common shares starting June 2005.
The agreement also allows for the placement of an additional $4 million in convertible debentures at the option of the investor.
The investors will receive warrants for 1.7 million shares at $3.58 for five years, exercisable starting six months after the deal closes. The deal is expected to close at the end of this week.
Thomas Weisel Partners LLC acted as lead placement agent on the deal, and Kaufman Bros. LP acted as co-agent.
Based in Redwood City, Calif., BroadVision is a web applications provider.
| Issuer: | BroadVision Inc.
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| Issue: | Convertible debentures
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| Amount: | $20 million
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| Maturity: | Three years
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion premium: | 15%
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| Conversion price: | $2.76
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| Warrants: | For 1.7 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $3.58
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| Placement agent: | Thomas Weisel Partners LLC and Kaufman Bros. LP
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| Investors: | Portside Growth & Opportunity Fund, SF Capital Partners Ltd., Manchester Securities Corp., Kings Road Investments Ltd., Provident Premier Master Fund Ltd.
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| Announcement date: | Nov. 10
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| Pricing date: | Nov. 9
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| Stock price: | $2.44 at close Nov. 9
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