By Laura Lutz
Des Moines, Jan. 4 - Modtech Holdings, Inc. announced a $5 million private placement of a secured term note with Laurus Master Fund, Ltd. in an 8-K filing with the Securities and Exchange Commission.
The note will bear interest at Prime rate plus 250 basis points. The note matures on Dec. 28, 2009.
Monthly principal payments of $104,166.66 plus accrued interest will begin on April 1.
The note may be prepaid in whole, but not in part, at any time for 124% of the then-outstanding principal amount plus accrued interest.
Laurus also received warrants for 192,029 shares at an exercise price of $5.06 per share, 192,029 shares at $5.29 per share and 192,028 shares at $6.53 per share. The warrants will expire on Dec. 28, 2013.
In connection with the placement, Modtech also reduced the conversion price on a $5 million convertible note issued to Laurus on Oct. 31. The conversion price was lowered to $3.57 per share from $6.63 per share.
Concurrently, Laurus converted $3,534,300 principal amount of that note into 990,000 shares at the reduced conversion price.
Based in Perris, Calif., Modtech designs and manufactures modular buildings.
| Issuer: | Modtech Holdings, Inc.
|
| Issue: | Secured term note
|
| Amount: | $5 million
|
| Maturity: | Dec. 28, 2009
|
| Coupon: | Prime rate plus 250 bps
|
| Price: | Par
|
| Warrants: | For 576,086 shares
|
| Warrant expiration: | Dec. 28, 2013
|
| Warrant strike price: | $5.06 per share for 192,029 shares; $5.29 for 192,029 shares; $6.53 for 192,028 shares
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Dec. 28
|
| Stock symbol: | Nasdaq: MODT
|
| Stock price: | $4.48 at close Dec. 29
|
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