8% senior notes convert at $3.00 per share; shares sold at $2.00 each
By Devika Patel
Knoxville, Tenn., May 10 - Institutional Financial Markets, Inc. said it plans a $13.7 million private placement of 8% convertible senior notes and private placement of stock with Mead Park Capital Partners LLC and Cohen Bros. Financial, LLC.
The company will sell 2,749,167 common shares at $2.00 per share. The price per share is a 28.57% discount to the May 9 closing share price, $2.80.
The notes, totaling $8.2 million, are due 2018 and convert to 2,749,167 shares at $3.00 per share. The conversion price is a 7.14% premium to the May 9 closing share price.
Mead Park Capital will purchase 1,949,167 shares for $3.9 million and will buy $5.8 million of convertibles, and Cohen Bros. will purchase 800,000 shares for $1.6 million and will buy $2.4 million of convertibles.
Proceeds will be deployed in the company's operating businesses and used for working capital needs.
Institutional Financial is a Philadelphia-based financial services company specializing in credit-related fixed-income investments.
| Issuer: | Institutional Financial Markets, Inc.
|
| Issue: | Convertible senior notes, common stock
|
| Amount: | $13,698,334
|
| Warrants: | No
|
| Investors: | Mead Park Capital Partners LLC and Cohen Bros. Financial, LLC
|
| Pricing date: | May 10
|
| Stock symbol: | NYSE: IFMI
|
| Stock price: | $2.80 at close May 9
|
| Market capitalization: | $20.29 million
|
|
|
| Convertibles
|
| Amount: | $8.2 million
|
| Maturity: | Dec. 1, 2018
|
| Coupon: | 8%
|
| Conversion rate: | Into 2,749,167 shares
|
| Conversion price: | $3.00
|
| Conversion premium: | 7.14%
|
|
|
| Shares
|
| Amount: | $5,498,334
|
| Shares: | 2,749,167
|
| Price: | $2.00
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
