By Sheri Kasprzak
New York, Sept. 8 - HyperSpace Communications, Inc. wrapped a $4.55 million private placement as part of an extension on its $25 million revolving credit facility.
The debentures are convertible at $0.75 each. The full terms of the debentures could not be determined by press time Friday evening.
The investors also received warrants for 2,275,000 shares, exercisable at $1.10 each.
Investors who purchased $5 million in convertible debentures in April 2006 will roll those debentures plus interest into the new debentures.
As a condition of its current credit facility with Wachovia Capital Finance Corp., HyperSpace was required to raise $4.7 million by Nov. 28, 2006.
The facility was extended to Jan. 17, 2007.
Proceeds from the placement will be used for debt reduction and working capital.
Denver-based HyperSpace provides information technology hardware for mid-sized companies, government agencies and education organizations.
| Issuer: | HyperSpace Communications, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $4.55 million
|
| Conversion price: | $0.75
|
| Warrants: | For 2,275,000 shares
|
| Warrant strike price: | $1.10
|
| Settlement date: | Sept. 8
|
| Stock symbol: | Amex: HCO
|
| Stock price: | $1.61 at close Sept. 8
|
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