Offering includes warrants; proceeds used to repay 2007 convertibles
By Devika Patel
Knoxville, Tenn., April 18 - Mad Catz Interactive, Inc. secured commitments for a $12.2 million private placement of stock on April 17, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 6,352,293 common shares at $1.92 apiece. The price per share is a 9.86% discount to the April 15 closing share price of $2.13.
The investors will also receive five-year warrants for 2,540,918 shares, which are each exercisable at $2.56. The strike price represents a 20.19% premium to the April 15 closing share price.
Roth Capital Partners is the agent. Settlement is expected April 22.
Proceeds, along with borrowings under the company's credit facility, will be used to repay the $14.5 million of principal and $200,000 in interest due on the convertible notes the company issued in November 2007 as partial consideration for its acquisition of Saitek. The note carries a 7.5% interest rate and is convertible into common shares at $1.42 per share.
Based in San Diego, Mad Catz produces and sells accessories for videogame platforms, personal computers and audio devices.
| Issuer: | Mad Catz Interactive, Inc.
|
| Issue: | Common shares
|
| Amount: | $12,196,403
|
| Shares: | 6,352,293
|
| Price: | $1.92
|
| Warrants: | For 2,540,918 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.56
|
| Agent: | Roth Capital Partners
|
| Pricing date: | April 18
|
| Settlement date: | April 22
|
| Stock symbol: | Amex: MCZ
|
| Stock price: | $2.13 at close April 15
|
| Market capitalization: | $107.55 million
|
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