By Sheri Kasprzak
New York, May 1 - MediCor Ltd. has revealed the particulars on its previously announced $50 million private placement of senior secured convertible notes.
The notes, due March 31, 2011, are convertible into common shares at $4.00 each and bear interest at Libor plus 600 basis points.
The notes were purchased by Silver Oak Capital, LLC; GAIA Offshore Master Fund, Ltd. and Portside Growth and Opportunity Fund.
After March 31, 2010, the holders may require MediCor to redeem all or a portion of the outstanding principal of the notes at par plus interest. Each holder also has the right to require redemption of the notes at 120% of principal plus interest if there is a change in control of the company.
The investors also received warrants for 3,125,000 shares, exercisable at $4.50 each through April 26, 2011.
UBS Investment Bank was the placement agent.
Proceeds will be used to acquire Biosil Ltd. and Nagor Ltd. The remainder will be used for working capital and general corporate purposes.
Connected to the deal, Sirius Capital LLC converted $37.5 million of outstanding loans into senior secured convertible notes and warrants.
Las Vegas-based MediCor manufactures breast implants.
| Issuer: | MediCor Ltd.
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| Issue: | Senior secured convertible notes
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| Amount: | $50 million
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| Maturity: | March 31, 2011
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| Coupon: | Libor plus 600 basis points
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| Conversion price: | $4.00
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| Call: | Holders may force redemption at par plus interest after March 31, 2010
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| Warrants: | For 3,125,000 shares
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| Warrant expiration: | April 26, 2011
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| Warrant strike price: | $4.50
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| Investors: | Silver Oak Capital, LLC; GAIA Offshore Master Fund, Ltd. and Portside Growth and Opportunity Fund
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| Placement agent: | UBS Investment Bank
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| Settlement date: | April 26
|
| Stock symbol: | OTCBB: MDCR
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| Stock price: | $3.70 at close April 26
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