Offering to fund debt repayment and also general corporate purposes
By Devika Patel
Knoxville, Tenn., Feb. 14 - KV Pharmaceutical Co. said it plans a private placement of stock. The deal is slated to raise $32.34 million.
The company will sell 9.95 million class A common shares at $3.25 apiece. The price per share is a 25.8% discount to the Feb. 11 closing share price of $4.38.
Jefferies & Co., Inc. is the agent.
Settlement is expected Feb. 17.
Proceeds will be used to repay debt under the company's credit facility with U.S. Healthcare and for general corporate purposes.
The company also said it has agreed to terms with US Healthcare I, LLC and US Healthcare II, LLC to close on a $130 million multi-draw financing facility by Feb. 18.
Upon completion of this agreement, the loan terms and covenants will be amended to reflect the company's plans, including the disposition of certain assets. The components of the amended agreement will include breaking up the $60 million payment that was due on March 20 into three $20 million payments, with the first payment due upon closing, $20 million due in April and $20 million due in August.
In addition, all past covenant issues will be waived. Future draws against the facility, subject to the company achieving certain milestones, are expected to be $15 million in March, $15 million in May and $10 million in each of July, August, September and October.
KV is a St. Louis specialty pharmaceutical company.
| Issuer: | KV Pharmaceutical Co.
|
| Issue: | Class A common shares
|
| Amount: | $32,337,500
|
| Shares: | 9.95 million
|
| Price: | $3.25
|
| Warrants: | No
|
| Agent: | Jefferies & Co., Inc.
|
| Pricing date: | Feb. 14
|
| Settlement date: | Feb. 17
|
| Stock symbol: | NYSE: KV.A
|
| Stock price: | $4.38 at close Feb. 11
|
| Market capitalization: | $261.76 million
|
© 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.
