Deal sells 9% senior secured notes, 2.25% senior secured convertibles
By Devika Patel
Knoxville, Tenn., June 23 – Mela Sciences, Inc. completed a $42.5 million private placement of 9% senior secured notes and 2.25% senior secured convertible debentures on June 22, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The $10 million notes mature on Nov. 30, 2015.
The $32.5 million convertibles mature in five years and are initially convertible into about 43.3 million common shares at $0.75 per share.
Investors also received five-year warrants for 3 million common shares, which are exercisable at $0.75.
The conversion price and strike price reflect a 56.9% discount to the June 19 closing share price of $1.74.
Proceeds were used to purchase the XTRAC and VTRAC laser business from PhotoMedex Inc. for $42.5 million.
Mela is a Irvington, N.Y., medical device company.
| Issuer: | Mela Sciences, Inc.
|
| Issue: | Senior secured notes and senior secured convertible debentures
|
| Amount: | $42.5 million
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.75
|
| Settlement date: | June 22
|
| Stock symbol: | Nasdaq: MELA
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| Stock price: | $1.74 at close June 19
|
| Market capitalization: | $10.87 million
|
|
|
| Notes
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| Amount: | $10 million
|
| Maturity: | Nov. 30, 2015
|
| Coupon: | 9%
|
|
|
| Convertibles
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| Amount: | $32.5 million
|
| Maturity: | Five years
|
| Coupon: | 2.25%
|
| Conversion price: | $0.75
|
| Conversion ratio: | Into about 43.3 million shares
|
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