8% senior note converts at $3.00 per share; shares sold at $2.00 each
By Devika Patel
Knoxville, Tenn., Sept. 25 - Institutional Financial Markets, Inc. completed a $13.75 million private placement of 8% convertible senior promissory notes and private placement of stock with Mead Park Capital Partners LLC and Cohen Bros. Financial, LLC on Sept. 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal priced for $13.7 million on May 10.
The company sold 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 $8.25 million note is due in five years and converts into common shares at $3.00 per share. The conversion price is a 7.14% premium to the May 9 closing share price.
Mead Park Capital invested $9.75 million and Cohen Bros. invested $4 million.
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 promissory notes, common stock
|
| Amount: | $13,745,835
|
| Warrants: | No
|
| Investors: | Mead Park Capital Partners LLC (for 9,745,835), Cohen Bros. Financial, LLC (for $4 million)
|
| Pricing date: | May 10
|
| Settlement date: | Sept. 25
|
| Stock symbol: | NYSE: IFMI
|
| Stock price: | $2.80 at close May 9
|
| Market capitalization: | $20.29 million
|
|
|
| Convertibles
|
| Amount: | $8,247,501
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| 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.
