Interest terms of five-year subordinated notes sold to Bison amended
By Devika Patel
Knoxville, Tenn., April 6 – Lime Energy Co. amended the terms of the subordinated convertible notes it sold to Bison Capital Partners IV, LP in an $11.75 million private placement, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal settled on March 24, and the convertibles were revised on March 31.
The amendment stipulates that the company must pay 10.5% interest on the principal semiannually in cash or allow interest to accrue and be added to the principal at 12.5% per annum. Also, the amendment states that, should the company fail to meet certain targets on June 30, Sept. 30 or Dec. 31, it will pay an additional $1 million in interest per quarter in which the targets have not been met.
Under the original terms, the interest rate was fixed at 8%.
The notes mature on March 24, 2020 and are convertible into common shares at an initial conversion price of $3.16 per share, which is a 12.06% premium to the March 23 closing share price of $2.82.
Proceeds were used to acquire EnerPath International Holding Co.
Based in Huntersville, N.C., Lime Energy is an energy technology and engineering company.
| Issuer: | Lime Energy Co.
|
| Issue: | Subordinated convertible notes
|
| Amount: | $11.75 million
|
| Maturity: | March 24, 2020
|
| Coupon: | 10.5% in cash or 12.5% in kind
|
| Conversion price: | $3.16
|
| Conversion premium: | 12.06%
|
| Warrants: | No
|
| Investor: | Bison Capital Partners IV, LP
|
| Settlement date: | March 24
|
| Amended: | March 31
|
| Stock symbol: | Nasdaq: LIME
|
| Stock price: | $2.82 at close March 23
|
| Market capitalization: | $11.46 million
|
© 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.
