By Sheri Kasprzak
New York, Aug. 7 - Mondas plc revised the terms of its 8.75% convertible loan stock (CULS) 2007 and also raised another £1 million from the convertible loan stock.
Among the changes, the coupon rate for the loan stock will drop to 8% from 8.75% and the redemption date of the loan stock will be moved back to Oct. 31, 2011 from Oct. 31, 2007.
"Although the company is trading well, following improving trading conditions in the financial markets and recent acquisitions of Eclipse and Bell Curve [research management software], the Mondas directors believe that the company may not have the necessary financial resources available to redeem the CULS in 15 months' time," said a statement from Mondas released Monday morning.
Also, the company raised another £1 million from the sale of additional convertible loan stock at a price of 100p per £1 of additional CULS. The new CULS bear interest at 8% annually and are payable in half-yearly installments on June 30 and Dec. 31 of each year. The stock is redeemable, if not converted, on Oct. 31, 2011.
The stock is convertible at the rate of four common shares for every £1 of CULS.
Teather & Greenwood plc was the placement agent for the new offering.
Proceeds from the additional CULS will be used for sales and marketing efforts, product development and working capital.
Based in London, Mondas develops business management software aimed at the financial markets sector and the business systems sector.
| Issuer: | Mondas plc
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| Issue: | Convertible loan stock 2007
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| Amount: | £1 million
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| Coupon: | 8%
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| Price: | Par
|
| Yield: | 8%
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| Call: | Redeemable Oct. 31, 2011 if not converted
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| Conversion ratio: | Into four common shares per £1 of convertible loan stock
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| Warrants: | No
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| Placement agent: | Teather & Greenwood plc
|
| Settlement date: | Aug. 7
|
| Stock symbol: | London: MDS
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| Stock price: | 17.25p at close Aug. 4
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