By Laura Lutz
Des Moines, Nov. 2- Modtech Holdings Inc. issued a $13 million term note and a $5 million convertible note to Laurus Master Fund, Ltd.
The notes bear interest at Prime rate plus 250 to 375 basis points. Both notes have a term of three years.
The convertible note is convertible into 763,897 shares at an average conversion price of $6.63 per share.
Laurus also received warrants for 2,122,092 shares, exercisable at $7.05 per share.
Rodman and Renshaw acted as placement agent for the deals.
The company also retired its senior convertible subordinated notes for $13.1 million, a discount of approximately 25% from the $17.6 million balance due on the notes. The payment, to noteholder Amphora Ltd., consisted of $8 million in cash and 1 million shares of common stock. Amphora retained warrants for 269,442 shares at $7.69 per share.
The company expects to record a gain from the retirement of debt of about $3 million in the quarter ending Dec. 31.
Based in Perris, Calif., Modtech designs and manufactures modular buildings.
| Issuer: | Modtech Holdings Inc.
|
| Issue: | Term note and convertible note
|
| Amount: | $18 million
|
| Investor: | Laurus Master Fund, Ltd.
|
| Announcement date: | Nov. 2
|
| Stock symbol: | Nasdaq: MODT
|
| Stock price: | $4.90
|
|
|
| Term note
|
| Amount: | $13 million
|
| Term: | Three years
|
| Coupon: | Prime rate plus 250 to 375 bps
|
| Price: | Par
|
| Warrants: | For 2,122,092 shares
|
| Warrant strike price: | $7.05
|
|
|
| Convertible note
|
| Amount: | $5 million
|
| Maturity: | Three years
|
| Coupon: | Prime rate plus 250 to 375 bps
|
| Price: | Par
|
| Conversion ratio: | Into 763,897 shares
|
| Conversion price: | $6.63
|
| Warrants: | See above
|
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