By Sheri Kasprzak
New York, June 6 - Magnetech Industrial Services of Alabama, LLC has completed a private placement for $3.7 million.
Laurus Master Fund, Ltd. bought a $2.1 million term note and a $1.6 million revolving note.
The note matures May 31, 2009. The term note bears interest at Prime rate plus 100 basis points and the revolving note bears interest at Prime rate plus 150 basis points, with an 8% floor for both notes.
Laurus received warrants for 375,000 shares, exercisable at $0.01 each for seven years.
Magnetech may prepay the notes without penalty at any time.
Based in South Bend, Ind., Magnetech manufactures electromagnets, AC/DC motors, compressors and other equipment.
Term note
| Issuer: | Magnetech Industrial Services of Alabama, LLC
|
| Issue: | Term note
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| Amount: | $2.1 million
|
| Maturity: | May 31, 2009
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| Coupon: | Prime rate plus 100 basis points, 8% floor
|
| Warrants: | For 375,000 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.01
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | May 31
|
|
|
| Revolving note
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| Issuer: | Magnetech Industrial Services of Alabama, LLC
|
| Issue: | Revolving note
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| Amount: | $1.6 million
|
| Maturity: | May 31, 2009
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| Coupon: | Prime rate plus 150 basis points, 8% floor
|
| Warrants: | See term note
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | May 31
|
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