By Sheri Kasprzak
New York, March 22 - Electroglas, Inc. plans to complete a private placement of senior secured subordinated convertible notes for $25.75 million.
The 6.25% notes due 2027 are convertible into common shares at $2.295 each, a 12.5% premium to the company's March 21 closing stock price of $2.04.
The deal is set to close March 26.
Proceeds will be used to repay $8.5 million in bonds due June 15, 2007. The rest will be used for working capital and general corporate purposes.
The notes are fully redeemable any time after March 26, 2010 at par plus interest.
The company may force conversion of the notes if the stock trades above 150% of the conversion price for 20 of 30 trading days.
Piper Jaffray & Co. was the placement agent.
Located in San Jose, Calif., Electroglas develops semiconductor wafer probers, test floor management software and provides services to the semiconductor-manufacturing sector.
| Issuer: | Electroglas, Inc.
|
| Issue: | Senior secured subordinated convertible notes
|
| Amount: | $25.75 million
|
| Maturity: | 2027
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion price: | $2.295
|
| Call: | May be redeemed at par plus interest after March 26, 2010; may force conversion if stock trades above 150% of conversion price for 20 of 30 trading days
|
| Warrants: | No
|
| Placement agent: | Piper Jaffray & Co.
|
| Announcement date: | March 22
|
| Settlement date: | March 26
|
| Stock symbol: | Nasdaq: EGLS
|
| Stock price: | $2.04 at close March 21
|
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