Agent to broker offering of senior notes, warrants and common stock
A story in the Sept. 7 edition of the Prospect News PIPE Daily did not identify the agent for Ener1, Inc.'s $55 million brokered placement of senior unsecured notes. JMP Securities LLC is the agent for the placement. A corrected version of the story follows:
By Devika Patel
Knoxville, Tenn., Sept. 7 - Ener1, Inc. will raise $55 million in a brokered placement of senior unsecured notes accompanied by stock and warrants through agent JMP Securities LLC, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced Sept. 2, the same day the company said Itochu Corp. could invest up to $10 million in company.
In the latest deal, the company will sell $55 million 8.25% notes to funds managed by Goldman Sachs Asset Management, LP. The notes mature on March 1, 2013.
Investors also will receive 960,926 common shares and warrants for 2,882,776 shares.
The principal of the notes is payable in 10 equal quarterly installments, beginning in January 2011.
The warrants are exercisable at $3.82 for five years. The strike price represents a 17.18% premium to the Sept. 2 closing share price of $3.26.
Proceeds will be used for general operating expenditures and to help the company pursue its intended manufacturing plans to install 260 megawatts, or capacity for 11,000 electric vehicle battery packs, at its three Indianapolis facilities.
"Ener1 has heavily invested in expanding its global manufacturing operations in response to the anticipated demand from the grid energy storage, transportation and small cell markets, allowing us to meet our growth objectives," chairman and chief executive officer Charles Gassenheimer said in a press release. "We are appreciative of the vote of confidence that our shareholders have placed in Ener1's management team to execute its business plan."
In the Itochu investment, the company sold $4 million of its 6% senior convertible notes to the investor on Aug. 27 and said Itochu may buy an additional $6 million of the convertibles.
The convertible note matures on Aug. 27, 2015 and is initially convertible into common stock at $3.612 per share. The conversion price represents a 20% premium to $3.01, the closing share price on Aug. 26.
Fort Lauderdale, Fla.-based Ener1 is an alternative energy technology company.
| Issuer: | Ener1, Inc.
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| Issue: | Senior convertible notes, senior unsecured notes, 960,926 common shares
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| Amount: | $65 million
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| Stock symbol: | Amex: HEV
|
| Market capitalization: | $471.14 million
|
|
|
| Notes due March 2013
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| Issue: | Senior unsecured notes, 960,926 common shares
|
| Amount: | $55 million
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| Maturity: | March 1, 2013
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| Coupon: | 8.25%
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| Price: | Par
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| Yield: | 8.25%
|
| Warrants: | For 2,882,776 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $3.82
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| Agent: | JMP Securities LLC
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| Investors: | Funds managed by Goldman Sachs Asset Management, LP
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| Pricing date: | Sept. 2
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| Stock price: | $3.26 at close Sept. 2
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|
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| Notes due 2015
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| Issue: | Senior convertible notes
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| Amount: | $10 million
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| Maturity: | Aug. 27, 2015
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion price: | $3.612
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| Warrants: | No
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| Investor: | Itochu Corp.
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| Announcement date: | Sept. 2
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| Settlement date: | Aug. 27 (for $4 million)
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| Stock price: | $3.26 at close Aug. 27
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