By Sheri Kasprzak
Atlanta, Jan. 13 - Moscow CableCom Corp. has closed a private placement of convertible preferreds for $51 million.
The company sold 4.5 million shares of series B convertible preferred stock to Columbus Nova Capital Corp. for a total of $22.5 million in proceeds.
Columbus Nova also received warrants for an additional 8,283,000 shares of series B preferreds at $5 each.
Moscow CableCom's subsidiary ComCor-TV also received an $18 million as part of a $28.5 million debt facility from Columbus Nova. Additional details about the debt facility were not available Thursday.
ComCor will use the proceeds from the debt facility to pay off a $4 million bridge loan, which has been extended by Columbus Nova.
One of the conditions of the financing was the entry of ComCor-TV and Moscow Telecommunications Corp. into new agreements regarding the terms and conditions for ComCor's use of the Moscow Fiber Optic Network owned by Moscow Telecommunications.
Separately, Moscow CableCom has appointed Warren Mobley as president and chief executive of the company. Donald Miller-Jones will now be the company's chief financial officer. Andrew O'Shea and Francis Baker resigned from their positions as chief financial officer and secretary, respectively.
Baker, Louis Lubrano, Thomas McPartland and Sergey Mitrikov have resigned from the company's board of directors and Andrew Intrater, Ivan Isakov and Jay Haft - partners of Columbus Nova - have joined the board. Mobley and David Van Valkenburg have also been appointed to the board.
Based in New York, Moscow CableCom provides telecommunications services to homes and businesses in Moscow.
| Issuer: | Moscow CableCom Corp.
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| Issue: | Series B convertible preferred stock
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| Amount: | $22.5 million
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| Shares: | 4.5 million
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| Price: | $5
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| Warrants: | For 8,238,000 shares of series B convertible preferred stock
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| Warrant strike price: | $5
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| Investors: | Columbus Nova Capital Corp.
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| Settlement date: | Jan. 13
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| Stock price: | $6.11 at close Jan. 12 (last trade)
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