By Paul A. Harris
St. Louis, Jan. 14 - Infinity, Inc. completed a transaction for $30 million of senior secured notes with warrants for common stock on Friday.
The notes pay interest at three-month Libor plus 675 basis points, according to a press release that the company issued.
C.K. Cooper & Company served as placement agent for the Regulation D private placement.
According to the press release, the company closed the transaction on Friday with affiliates of two New York-based institutional investors.
At quarterly intervals over three years beginning in the third quarter of 2005, the company will have the option to issue an additional $15 million of notes with warrants, capped at $15 million in any rolling 12-month period and $45 million in total. Additional notes will have an initial maturity of 42 months (54 months if the maturity of the original notes is extended). The issuance of the additional notes is subject to the company's future satisfaction of various closing conditions.
Proceeds will be used for the repayment of subsidiary level secured debt and for exploration and development in Texas and the Rockies.
Infinity, through its wholly owned subsidiaries Infinity Oil & Gas of Wyoming, Inc. and Infinity Oil and Gas of Texas, Inc., is an independent energy company engaged in the exploration, development and production of natural gas and oil and the operation and acquisition of natural gas and oil properties. The company operates out of Denver, Colo. and Chanute, Kan.
| Issuer: | Infinity, Inc.
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| Initial amount: | $30 million
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| Potential future drawdown: | $45 million
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| Maturity: | Jan. 13, 2009 with option to extend maturity one year to Jan. 13, 2010
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| Security description: | Senior secured notes with warrants
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| Warrants: | Five-year warrants to purchase 924,000 shares of common stock for $9.09 per share and 732,000 shares for $11.06 per share
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| Placement agent: | C.K. Cooper & Co.
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| Coupon: | Three month Libor plus 675 basis points
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| Redemption features: | Callable after Jan. 13, 2006 at 105, 104, 103; also contains equity clawback
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| Settlement date: | Jan. 13
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