By Sheri Kasprzak
New York, April 20 - Medical CV, Inc. completed a $10 million private placement of senior secured debt with warrants.
The company sold 11% notes with a three-year term to Whitebox Advisors, LLC.
The investor also received warrants for 1.2 million shares, exercisable at $4.00 each for five years.
So far, Medical CV has received $8 million of the investment and will receive the remainder within the next 45 days.
The note may be prepaid in part or in full at an 8% premium in the first year, a 6% premium in the second year and a 3% premium in the third year.
Located in Minneapolis, Medical CV manufactures medical devices used during cardiovascular surgery.
| Issuer: | Medical CV, Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $10 million
|
| Maturity: | Three years
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Call: | May be prepaid in part or full at 8% premium for the first year; 6% premium for the second year; 3% premium for the third year
|
| Warrants: | For 1.2 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.00
|
| Investor: | Whitebox Advisors, LLC
|
| Settlement date: | April 20
|
| Stock symbol: | OTCBB: MCVI
|
| Stock price: | $4.00 at close April 20
|
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