By Sheri Kasprzak
New York, March 17 - Infinity Energy Resources, Inc. said it has wrapped an $8 million private placement of senior secured notes.
The notes are in addition to $35.5 million in notes already purchased, bringing to $43.5 million the proceeds raised.
The notes mature in four years and bear interest at Libor plus 675 basis points.
The notes are redeemable for cash any time in the first year at 105% of face value, declining by 1% every year, plus interest.
The investors will receive five-year warrants for 259,000 shares exercisable at $8.65 each and 205,100 shares at $10.53 each.
C.K. Cooper & Co. was the placement agent.
On Jan. 13, 2005, the company issued $30 million of the notes and on Dec. 12, 2005 issued another $5.5 million.
Proceeds will be used for drilling and exploitation on the company's properties in Texas.
Based in Chanute, Kan., Infinity is an oil and natural gas exploration company.
| Issuer: | Infinity Energy Resources, Inc.
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| Issue: | Senior secured notes
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| Amount: | $8 million
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| Maturity: | Four years
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| Coupon: | Libor plus 675 basis points
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| Call: | Redeemable at 105% of face value plus interest in the first year, declining by 1% in every subsequent year
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| Warrants: | For 464,100 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $8.65 for 259,000 shares, $10.53 for 205,100 shares
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| Settlement date: | March 17
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| Stock symbol: | Nasdaq: IFNY
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| Stock price: | $7.57 at close March 17
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