By LLuvia Mares
New York, Aug. 17 - Delta Financial Corp. announced Thursday details of its 10 million in convertible notes.
The convertibles are part of a total $70 million financing from Angelo, Gordon & Co., which also includes a $60 million repurchase financing facility.
The notes are convertible into 2 million shares of the company's common stock at a conversion price of $5.00 per share.
If the convertible notes are redeemed, the principal amount of the Angelo Gordon repurchase financing facility will be reduced from $60 million to $50 million.
In connection with the transaction, Delta issued warrants to purchase 10 million shares of common stock at an exercise price of $5.00 each.
The warrants expire in February 2009 and subject to extension if the company does not obtain stockholder approval for the issuance of the warrant shares within 90 days of the closing date.
The warrants are currently exercisable for 4.7 million shares of common stock.
The $10 million in convertible notes mature in August 2008, if not converted or redeemed earlier and bear interest at a rate of 6% for the first 90 days and then 12% until converted or redeemed.
Woodbury, N.Y.-based Delta Financial is a specialty consumer finance company that originates, securitizes and sells non-conforming mortgage loans.
| Issuer: | Delta Financial Corp.
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| Pricing date: | Aug. 14
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| Stock symbol: | Nasdaq: DFC
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| Stock price: | $4.29 at close Aug. 15
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| Investor: | Angelo, Gordon & Co.
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| Convertibles notes
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| Issue: | Convertible notes
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| Amount: | $10 million
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| Units: | 2.0 million shares
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| Price: | $5.00
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| Warrants
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| Warrants: | For 4.7 million shares
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| Warrant strike price: | $5.00
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| Warrant expiration: | February 2009
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