By Sheri Kasprzak
New York, Nov. 6 - Brooke Credit Corp. revealed the particulars of its previously announced $45 million private placement of fixed-rate notes with warrants.
The 12% notes were purchased by Falcon Mezzanine Partners II, LP; FMP II Co-Investment, LLC; and JZ Equity Partners plc.
The notes are due April 13, 2013 and require interest-only payments until maturity.
The investors received warrants for 338,262 shares, exercisable at $0.01 each for eight years.
Of the proceeds, $18.2 million will be used to pay borrowings, and $23.7 million will be used to fund the company's loan portfolio growth.
Morgan Joseph & Co. Inc. was the placement agent.
Based in Overland Park, Kan., Brooke Credit originates loans to insurance agencies.
| Issuer: | Brooke Credit Corp.
|
| Issue: | Fixed-rate notes
|
| Amount: | $45 million
|
| Maturity: | April 13, 2013
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | For 338,262 shares
|
| Warrant expiration: | Eight years
|
| Warrant strike price: | $0.01
|
| Investors: | Falcon Mezzanine Partners II, LP; FMP II Co-Investment, LLC; and JZ Equity Partners plc
|
| Placement agent: | Morgan Joseph & Co. Inc.
|
| Settlement date: | Nov. 1
|
| Stock symbol: | Nasdaq: BXXX
|
| Stock price: | $11.75 at close Nov. 1
|
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