New York, Dec. 31 - Modtech Holdings Inc. said Friday it completed a private placement of $25 million senior subordinated secured convertible notes.
The company priced five-year notes with a 7% coupon.
The securities convert at 115% of the five-day average trading price of the company's stock, with a floor of $8.61.
Investors also received a five-year warrant for 8% of the shares underlying the notes at the conversion price of the note.
Rodman & Renshaw, LLC was placement agent.
Perris, Calif.-based Modtech, a designer and manufacturer of modular buildings, will have immediate access to $15 million of the proceeds to repay its revolving credit facility and for working capital and general corporate purposes. The remaining $10 million will be used to cash collateralize a letter of credit issued for the benefit of the note holder.
| Issuer: | Modtech Holdings Inc.
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| Issue: | Senior subordinated secured convertible notes
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| Amount: | $25 million
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| Maturity: | Dec. 30, 2009
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| Coupon: | 7%
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| Conversion price: | 115% of five-day average stock price, floor of $8.61
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| Warrants: | For 8% of shares underlying notes
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| Warrant term: | 5 years
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| Warrant strike price: | Same as notes
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| Put: | $8.33 million on each of June 30, 2006, 2007 and 2008
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| Placement agent: | Rodman & Renshaw, LLC
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| Settlement date: | Dec. 31
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| Stock price: | $7.87 at close Dec. 31
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