By Devika Patel
Knoxville, Tenn., March 23 - Deerfield Capital Corp. arranged a $25 million private placement of senior subordinated convertible notes on March 22, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The notes mature in 7.5 years and are initially convertible into common shares at $6.05, which equals a conversion rate of approximately 165.29 shares per $1,000 of notes. The notes accrue interest at rates ranging from 8% to 11%. They may be called after two years at par plus interest and a call premium.
The convertibles' interest accrues at 8% in years one and two; at 9% in year three; at 10% in year four and at 11% thereafter. The company may pay 50% of the interest in kind.
Bounty Investments, LLC is the investor.
Proceeds will be used to help repurchase all of the company's $73.9 million in series A and series B senior secured notes.
Deerfield Capital is a Rosemont, Ill.-based corporation with a portfolio composed primarily of fixed-income investments.
| Issuer: | Deerfield Capital Corp.
|
| Issue: | Senior subordinated convertible notes
|
| Amount: | $25 million
|
| Maturity: | 7.5 years
|
| Coupon: | 8% in years one and two; 9% in year three; 10% in year four; and 11% thereafter
|
| Price: | Par
|
| Yield: | 8% to 11%
|
| Conversion price: | $6.05
|
| Conversion rate: | Approximately 165.29 shares per $1,000 of notes
|
| Call: | After two years
|
| Warrants: | No
|
| Investors: | Bounty Investments, LLC
|
| Pricing date: | March 22
|
| Stock symbol: | Nasdaq: DFR
|
| Stock price: | $5.10 at close March 22
|
| Market capitalization: | $35.6 million
|
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