By Sheri Kasprzak
Atlanta, April 22 - Home Solutions of America Inc. said it has closed an upsized private placement for $4.5 million.
The company issued $4 million in a promissory note to Petra Mezzanine Fund LP on March 31.
The note bears interest at 12% annually and matures March 31, 2010.
Petra also received a warrant for 533,333 shares, exercisable at $0.01 each through March 31, 2012.
Also, on April 18, the company increased the size of the deal by issuing a $500,000 loan to Laddcap Value Partners LP. The loan also bears interest at 12% annually and matures March 31, 2010.
Laddcap received warrants for 66,666 shares, exercisable at $0.01 each through March 31, 2012.
The company conducted the private placement to fund its acquisition of Cornerstone Building and Remodeling Inc. Petra received a second-lien security interest in the assets of Home Solutions, Cornerstone and P.W. Stephens Inc., another subsidiary of Home Solutions.
Based in Dallas, Home Solutions provides home restoration services like fire and water restoration.
First issue
| Issuer: | Home Solutions of America Inc.
|
| Issue: | Promissory note
|
| Amount: | $4 million
|
| Maturity: | March 31, 2010
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | For 533,333 shares
|
| Warrant expiration: | March 31, 2012
|
| Warrant strike price: | $0.01
|
| Investor: | Petra Mezzanine Fund LP
|
| Settlement date: | March 31
|
| Stock price: | $1.61 at close March 31
|
|
|
| Second issue
|
| Issuer: | Home Solutions of America Inc.
|
| Issue: | Promissory note
|
| Amount: | $500,000
|
| Maturity: | March 31, 2010
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | For 66,666 shares
|
| Warrant expiration: | March 31, 2012
|
| Warrant strike price: | $0.01
|
| Investor: | Laddcap Value Partners LP
|
| Settlement date: | April 18
|
| Stock price: | $1.64 at close April 18
|
|
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