By Devika Patel
Knoxville, Tenn., July 21 - U.S. Helicopter Corp. settles a bridge loan on July 15 for $1.5 million, according to an 8-K filed Monday with the Securities and Exchange Commission.
The loan is evidenced by a $1.5 million convertible note.
The note will be due on Dec. 31, 2008 but may mature earlier if the company consummates an equity financing with institutional investors.
The note's principal will be convertible at any time at a conversion price equal to the lower of the conversion price for convertible debt issued in the first closing of the institutional equity financing or $0.20 per share. It carries a 15% coupon.
Additionally, the investors received warrants for 3 million common shares. The warrants will be exercisable at $0.20 for five years.
Proceeds will be used for working capital.
New York-based U.S. Helicopter provides helicopter shuttle service between the Downtown Manhattan Heliport and Kennedy Airport.
| Issuer: | U.S. Helicopter Corp.
|
| Issue: | Bridge loan evidenced by convertible notes
|
| Amount: | $1.5 million
|
| Maturity: | Dec. 31
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Conversion price: | $0.20
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.20
|
| Settlement date: | July 15
|
| Stock symbol: | OTCBB: USHP
|
| Stock price: | $0.27 at close on July 15
|
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