By Sheri Kasprzak
New York, Nov. 13 - iBroadband, Inc. closed a private placement of two promissory notes with warrants for $5 million.
The company issued a secured term note in principal of $2.5 million and a secured non-convertible term note in principal of $2.5 million to Laurus Master Fund, Ltd.
Each note matures on Nov. 7, 2009 and bears interest at Prime rate plus 200 basis points with a 10% floor and a 14% ceiling.
The notes may be redeemed any time at 105% of principal plus interest.
Laurus received warrants for 4 million shares, exercisable at $0.001 each.
Proceeds from the secured term note will be used to acquire from bankruptcy the assets of Cedar Valley Communications, Inc. for $1 million. Cedar Valley is a local exchange carrier based in Athens, Texas. The rest will be used for debt retirement and working capital.
Proceeds from the non-convertible term note were placed in escrow pending the consummation of an acquisition by the company or its subsidiaries.
Located in Farmers Branch, Texas, iBroadband provides high-speed wireless services to small- and medium-sized companies in the Southwest.
Secured term note
| Issuer: | iBroadband, Inc.
|
| Issue: | Secured term note
|
| Amount: | $2.5 million
|
| Maturity: | Nov. 7, 2009
|
| Coupon: | Prime plus 200 bps, 10% floor, 14% ceiling
|
| Call: | Redeemable at 105% of principal plus interest
|
| Warrants: | For 4 million shares
|
| Warrant strike price: | $0.001
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Nov. 8
|
| Stock symbol: | Pink Sheets: IBBD
|
|
|
| Non-convertible term note
|
| Issuer: | iBroadband, Inc.
|
| Issue: | Secured non-convertible term note
|
| Amount: | $2.5 million
|
| Maturity: | Nov. 7, 2009
|
| Coupon: | Prime rate plus 200 bps, 10% floor, 14% ceiling
|
| Call: | Redeemable at 105% of principal plus interest
|
| Warrants: | See above
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Nov. 8
|
| Stock symbol: | Pink Sheets: IBBD
|
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