Investor Luxor Capital Group also received 2 million common shares
By Devika Patel
Knoxville, Tenn., April 24 - Cardero Resource Corp. said it sold $5.5 million of senior secured notes for $5 million in a private placement on April 22. The notes were discounted by 9.1% and were sold to affiliates of Luxor Capital Group, LP.
The 10% notes are due in one year. They may be redeemed at par plus interest at any time and put at 110 plus interest under certain conditions.
Investors also received 2 million common shares.
Of the proceeds, $3 million was advanced to Cardero Coal Ltd., enabling Cardero Coal to exercise its option to acquire the shares of a private company that holds four coal licenses that form part of the Carbon Creek Metallurgical Coal Project. The remaining proceeds will be used for working capital.
Based in Vancouver, B.C., Cardero is a base and precious metal exploration company.
| Issuer: | Cardero Resource Corp.
|
| Issue: | Senior secured notes, 2 million common shares
|
| Amount: | $5.5 million
|
| Maturity: | One year
|
| Coupon: | 10%
|
| Price: | $5 million (9.1% discount)
|
| Call: | Yes, at par plus interest
|
| Put: | At 110 plus interest
|
| Warrants: | No
|
| Investor: | Luxor Capital Group, LP
|
| Settlement date: | April 22
|
| Stock symbol: | NYSE Amex: CDY
|
| Stock price: | $0.17 at close April 19
|
| Market capitalization: | $22.1 million
|
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