By Sheri Kasprzak
New York, Aug. 23 - DSL.net, Inc. closed a private placement of $15,002,000 in principal of notes for proceeds of $13 million.
MegaPath Inc. and its subsidiary MDS Acquisition, Inc. agreed to buy a $13,002,000 non-convertible note, priced at 84, for proceeds of $11 million. The 8% non-convertible note is due Dec. 31, 2007.
The investors also received four convertible notes totaling $2 million.
The first convertible note, for principal of $30,000, is due Dec. 31, 2007 and bears interest at 8% annually.
The second note, for $300,000, also bears interest at 8% annually and matures the earlier of Dec. 31, 2008 and 30 days after the first note becomes convertible.
The third 8% note for $150,000 is due the earlier of Dec. 31, 2008 and 30 days after the first and second notes are convertible.
The fourth note, for $1.52 million, becomes due the earlier of Dec. 31, 2008 and 30 days after the first through third notes become convertible.
The first note is convertible into 9.9% of the company's outstanding stock, with the price being set accordingly. The second notes will bring MegaPath's holding of the company's stock to 49.9%, the third to 51% and the fourth to 91%.
Proceeds will be used for the repayment of debt held by DunKnight Telecom Partners LLC and for working capital.
Based in Wallingford, Conn., DSL.net provides high-speed internet services to small- to mid-sized companies.
Promissory notes
| Issuer: | DSL.net, Inc.
|
| Issue: | Promissory notes
|
| Amount: | $13,002,000
|
| Proceeds: | $11 million
|
| Maturity: | Dec. 31, 2007
|
| Coupon: | 8%
|
| Price: | 84
|
| Warrants: | No
|
| Investors: | MegaPath Inc. and MDS Acquisition, Inc.
|
| Settlement date: | Aug. 22
|
| Stock symbol: | OTCBB: DSLN
|
| Stock price: | $0.032 at close Aug. 22
|
|
|
| Convertible notes
|
| Issuer: | DSL.net, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $2 million (notes of $30,000, $300,000, $150,000 and $1.52 million)
|
| Maturity: | Dec. 31, 2007 (for first $30,000 note); the earlier of Dec. 31, 2008 or 30 days after the other notes become convertible
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Equal to the quotient of the principal by the number of shares needed to own 9.9% of the company's outstanding stock for first note, 40% of the stock for the second notes, 1.1% for the third note and 40% for the fourth note
|
| Warrants: | No
|
| Investors: | MegaPath Inc. and MDS Acquisition, Inc.
|
| Settlement date: | Aug. 22
|
| Stock symbol: | OTCBB: DSLN
|
| Stock price: | $0.032 at close Aug. 22
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
