By Devika Patel
Knoxville, Tenn., June 13 - MRU Holdings, Inc. settled a $5 million private placement of secured convertible promissory notes on June 9, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes have a 9% coupon up to Sept. 30 and an 18% coupon thereafter until paid in full. They will mature Oct. 31, 2010. They are convertible into common shares at $2.58125 per share.
Investors also received warrants for 490,196 common shares, which are exercisable at $2.55 until June 8, 2013.
The company will use the proceeds to increase its liquidity position for the upcoming peak student loan season, prefund marketing expenses associated with the peak student loan season and any expenses associated with the company's upcoming securitization of its existing private student loan portfolio.
New York City-based MRU is a specialty finance company that provides federal and private student loans.
| Issuer: | MRU Holdings, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $5 million
|
| Maturity: | Oct. 31, 2010
|
| Coupon: | 9% until Sept. 30, 18% thereafter
|
| Price: | Par
|
| Yield: | 9% until Sept. 30, 18% thereafter
|
| Conversion price: | $2.58125
|
| Warrants: | For 490,196 shares
|
| Warrant expiration: | June 8, 2013
|
| Warrant strike price: | $2.55
|
| Pricing date: | June 9
|
| Stock symbol: | Nasdaq: UNCL
|
| Stock price: | $2.69 at close June 9
|
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