Deal sells 10% senior secured convertible debenture due June 30, 2017
By Devika Patel
Knoxville, Tenn., Dec. 30 – InterCloud Systems, Inc. sold a $7.5 million original issue discount senior secured convertible debenture for $7.5 million in a private placement on Dec. 29, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The 10% debenture is due June 30, 2017 and converts to common stock at $1.33 per share, which is a 23.15% premium to the Dec. 28 closing share price of $1.08. The investor may put $350,000 of the principal after Feb. 29, 2016.
A portion of the proceeds were used to pay down debt.
Based in Red Bank, N.J., the company is an end-to-end solutions provider of cloud and managed service-based platforms, professional services, applications and infrastructure to the telecommunications industry and corporate enterprises.
| Issuer: | InterCloud Systems, Inc.
|
| Issue: | Original issue discount senior secured convertible debenture
|
| Amount: | $7.5 million
|
| Maturity: | June 30, 2017
|
| Price: | $7.5 million
|
| Coupon: | 10%
|
| Conversion price: | $1.33
|
| Conversion premium: | 23.15%
|
| Put: | After Feb. 29, 2016, for $350,000 of debentures
|
| Warrants: | No
|
| Settlement date: | Dec. 29
|
| Stock symbol: | Nasdaq: ICLD
|
| Stock price: | $1.08 at close Dec. 28
|
| Market capitalization: | $26.76 million
|
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